What will drive global growth?

Ageing populations are likely to slow capital formation in North Asia, hurting global growth

In Tessellatum in the last three months, we have discussed three of the major implications of Asia’s ageing: That demographic shift in 10 major Asian economies (the A-10: China, India, Indonesia, Japan, the Philippines, Vietnam, Thailand, Korea, Malaysia, and Taiwan) is faster than the economic transition, that workforce quality is likely to trump quantity, and that Asia will continue to provide savings to the world. In this, the last of the four-part series, we see what this means for global growth.

Over the past three decades, the contribution of A-10 economies to incremental global gross domestic product (GDP) growth has risen