Ageing Asia: The continent is growing old at unprecedented rate

Opportunities will be matched by challenges.

Analyses have been saying for some time that Asia is ageing at an unprecedented rate –arguably the fastest the world has ever witnessed.

According to a research report from HSBC Global Research, the incredible opportunities permitted by the ‘demographic dividend’ in recent decades will only be matched by the challenges presented by ageing.

Over the course of the next half-century, Asia’s demographic composition will change inexorably as hundreds of millions of people across the continent enter into the ranks of the global senior citizenry, supported by a thinning contingent of working age adults.

Here’s more from HSBC Global Research:

This doesn’t bode so well for dependency ratios and long-term growth prospects.

In terms of ageing, China is already starting to look like Japan and the Asian tigers. Even Vietnam and Thailand, though in the heart of relatively youthful ASEAN, are starting to grey.

On the other side of the spectrum, the likes of the Philippines and India are only starting their demographic transitions.

In spite of the challenges that this process entails, there are also numerous opportunities across a variety of sectors and industries.
In the end it boils down to whether investors can position themselves correctly to take advantage of these trends.

The implications of Asia’s ageing demographics are vast, stretching from growth to a wide range of micro-factors, such as savings, labour, pension funds, health care and welfare costs, among others.