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Five ways demographics are transforming the world economy

Financial Times Asia
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Global aging is reshaping labor markets by 2026, with shrinking workforces in Europe and East Asia forcing automation adoption and pension reforms to sustain economic growth amid declining birth rates. Emerging economies like Africa and South Asia now drive 70% of global population growth, creating youthful labor pools that attract manufacturing investments but strain education and infrastructure systems. Urbanization accelerates as 60% of the world lives in cities by 2026, boosting service-sector demand while exacerbating housing shortages and income inequality in megacities like Lagos and Mumbai. Gender parity in workforces reaches a tipping point, with women comprising 48% of global labor by 2026, closing wage gaps in tech-driven sectors but leaving traditional industries lagging in representation. Climate migration surges as 200 million people relocate by 2026, altering demographic maps and pressuring economies to integrate displaced workers while managing resource conflicts in destination regions.
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Source: Financial Times Asia

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