Aging Population to weigh on Korea’s economic growth

Aging Population to weigh on Korea’s economic growth

One of the realities of our Aging of the Population investing theme is older people have shifted from living off income from jobs to income generated from savings and investments. Generally speaking, this usually leads to a sentiment shift from being spenders to becoming more thrifty. That economically induced change is a looming headwind for economies like the US that are heavily influenced by consumer spending. Confirmation for that line of thinking is being had courtesy of the Korean Labor Institute, which sees its future GDP being severely impacted by its aging population.


A new study has found that the growth rate of South Korea’s gross domestic product (GDP) is expected to turn negative by the 2030s.According to a report released by the Korea Labor Institute yesterday at the 8th National Statistics Development Forum, negative growth is expected due to an aging population.

According to the institute’s analysis, the growth rate will hover in the 1.2 percent range during the 2020s, before dropping to -0.4 percent growth, on average, during the 2030s.

Source: Aging Population Expected to Spur Negative GDP Growth by 2030 | Be Korea-savvy

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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