Over half of the world’s countries now have fertility rates below the replacement level of 2.1 children per woman, according to a recent post by the International Monetary Fund (IMF) on X (formerly Twitter).
The IMF highlights that this demographic shift affects two-thirds of the global population, signalling widespread economic and social challenges.
The decline in fertility rates, which marks a significant turning point for global demographics, raises concerns about the future workforce, economic growth, and sustainability of social welfare systems.
Many developed nations, particularly in Europe and East Asia, are grappling with shrinking working-age populations, which may hamper economic productivity and strain public finances as governments face increased spending on healthcare and pensions.
In its visual article, the IMF delves into the far-reaching implications of this trend, illustrating how population decline could slow growth in global economies while exacerbating inequalities.
Countries with low fertility rates may face a “demographic time bomb” unless they invest in policies to boost fertility, support immigration, and reform labor markets to accommodate aging populations.
“The global fertility decline is not just a demographic issue; it has broad implications for economies worldwide,” the IMF report emphasises.
As nations explore strategies to mitigate these challenges, experts stress the importance of targeted social policies, from childcare support to enhancing female participation in the labor force, to help counterbalance the shrinking birth rates.
The IMF’s report underscores the urgency of addressing demographic shifts to secure future economic stability and growth.
