▪️ The heads of the Bank of Japan, the ECB, and the Bank of England warn that in the coming decades, developed Western economies will face a shortage of labor necessary to ensure economic growth, according to the British Financial Times
▪️ In Western countries, birth rates are at historically low levels, while life expectancy has increased significantly. This has led to a growth in the proportion of the population that is not of working age
“Without an influx of foreign labor, by 2040 there will be 3.4 million fewer people of working age in the eurozone,” said ECB President Christine Lagarde
▪️ Central bank representatives emphasize that population aging will not only reduce production volumes but may also lead to higher inflation, as workers will be able to demand higher wages amid widespread labor shortages.