Costa Rica's ageing Future: turning points and policy options: a look towards 2040 and beyond
Costa Rica will become an aged economy in 2024, with older persons consuming more than youth for the first time.
(Generated with the help of GPT-4)
| Quick Facts | |
|---|---|
| Report location: | source |
| Language: | English |
| Publisher: | Economic Commission for Latin America |
| Authors: | Cepal/ECLAC, Gretchen Donehower, Paulo Saad, Tim Miller |
| Time horizon: | 2040 |
| Geographic focus: | Costa Rica, Global |
| Page count: | 4 |
Methods
The research method involved demographic analysis, economic modeling, and policy scenario testing based on data from the National Transfer Accounts (NTA) Network, which measures economic flows between different groups in a national economy.
(Generated with the help of GPT-4)
Key Insights
Costa Rica is on the brink of becoming an aged economy by 2024, a transition characterized by older individuals consuming more goods and services than the younger population. This shift mirrors global trends, with Japan being the first aged economy in 1996. Currently, there are 19 aged economies, predominantly in Europe. Projections indicate that by 2040, 73 economies, including Brazil, Chile, and Uruguay, will be aged. By the century's end, most global economies will be aged, increasing the demand for healthcare and services for the elderly. This demographic change will challenge governments and families, as many services for older persons are publicly funded.
Costa Rica's demographic landscape has evolved, with the youth population no longer the largest group since 2011. The working-age population will peak around 2022 and 2042 for different age groups, while the older population will peak at approximately 2.1 million in 2075. The economic support ratio, reflecting the balance between producers and consumers, will favor producers until 2024, offering a potential demographic dividend. However, this ratio is expected to decline as the older population grows, posing economic challenges for Costa Rica.
Policy options to address these challenges include delaying retirement, closing the gender gap in labor earnings, and raising taxes. The National Transfer Accounts (NTA) Network provides a framework for analyzing these economic flows and informing policy decisions.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: 2040 time horizon | 2040s time horizon | Costa Rica geographic scope | English publication language | Global geographic scope | ageing | demographic trends | demographics | development | economic challenges | gender gap | national transfer accounts | policy options | population | public sector pressure | retirement age | tax increase | workforce