Western populations set to shrink from 2029, straining public finances, Moody's warns
Source Summary
Moody's predicts that Western populations will begin shrinking from 2029 onward, driven by aging demographics. The rating agency warns this trend will have fundamental impacts on the global economy and force difficult policy decisions. Aging populations are expected to strain public finances across developed nations.
Why it matters
Demographic contraction in developed economies will directly affect tax revenues and increase spending on pensions and healthcare, creating structural fiscal pressures that governments must address.
