As the global population ages, economies worldwide face significant demographic shifts with far-reaching implications. This chapter explores the rise of the 'silver economy', focusing on three key areas: the extent of healthy aging and its impact on labor markets, the broader economic implications of demographic changes, and the role of targeted policies in mitigating the adverse effects of aging. The analysis reveals that although population aging poses challenges such as slower growth and increased fiscal pressures, healthier aging trends offer a silver lining by boosting labor force participation, extending working lives, and enhancing productivity. The chapter underscores the importance of policies that support healthy aging, increase labor force participation among older individuals, and close gender gaps in the workforce. By leveraging strategies related to these policies, countries can harness the potential of the silver economy to boost growth and rebuild fiscal buffers amid demographic headwinds.
Speaker:
Diaa Noureldin is a senior economist in the World Economic Studies Division of the IMF’s Research Department, where he contributes to the World Economic Outlook report. Before joining the IMF, he was an associate professor of economics at the American University in Cairo. He has published on a range of topics in macroeconomics and finance. He holds a DPhil in Economics from the University of Oxford.