Demographics are a headwind for emerging markets – BlackRock
A decline in labour growth and expected fall in the working age population will be a drag on emerging economies already suffering from fading growth prospects, BlackRock’s Global Head of Emerging Markets Amer Bisat told Reuters.
Global population growth over the past five decades fuelled a surge in labour and a rapid increase in gross domestic product in many emerging economies but Bisat said demographics were no longer a boon for the countries.
The changing demographics come against a backdrop of higher global interest rates and levels of debt which add to pressure on developing economies, with capital accumulation in emerging markets set to be “tough”, said Bisat, who leads a team managing approximately $35 billion at the world’s largest asset manager.
By Jorgelina Do Rosario and Karin Strohecker via Reuters