We’re looking at some global economic growth patterns today. Unfortunately, we’re entering an era with a lot of unknowns. Between collapsing demographics and industrial challenges, there seems to be more countries in the red than the green.
China is probably the worst off. After rapid growth brought on by urbanization, a large working-age population, and heavy subsidies, their growth has stagnated, and its population is getting more and more top heavy. Without a reversal of these trends, China’s economy is buying a one-way ticket on the struggle bus.
Even advanced economies like those in Europe are feeling the heat. As countries like Germany and Italy face their own demographic issues, new economic models will need to be created to keep their heads above water. Developing nations are a bit behind the curve in terms of aging demographics and industrial buildout, but they’ll need to shift towards higher value industries to ward off economic stagnation. Places like Brazil will also have to deal with China’s predatory industrial policies which have hindered economic progress.
So, it’s not looking great overall. Aging populations and an inability to evolve economically will stall growth in many regions. If these countries cannot navigate industrial transitions, global economic stability is going to look pretty bleak.