Macroeconomic effects and policy challenges of population ageing in China

Abstract

With the gradual ageing of population, reduced labor force and savings, China's economic growth will significantly slow down and trigger a series of problems such as falling real estate prices, old age and health care endowment deficit, which all call for preventive measures and in-depth analysis. Based on the systematical analysis of the domestic and global trend, this study explores the impact of ageing population macro-economy in China by comparing with Japan and other countries. A series of measures are proposed, including to increase the total fertility rate, guide the population flow with new urbanization, promote "excellent leverage" rather than simple "deleverageing", encourage innovation, support "intellectual capital" and more humanitarian care for the elderly to meet the challenges posed by an ageing society.