Aging population could hurt growth

GOVERNMENT MEASURES:The Japanese Chamber of Commerce said Taiwan needs to be more business friendly and offer better investments to avoid negative growth

Taipei Times
Date: Nov 05, 2016
By: Crystal Hsu / Staff reporter

The Japanese Chamber of Commerce and Industry in Taipei yesterday called on the government to draft measures to boost domestic demand in the medium term, as the nation’s aging population constrains private consumption.

The trend could deepen and become a problem by 2025 when the population starts to show negative growth, the chamber said in its annual report released yesterday.

“Taiwan’s private consumption runs the risk of contraction over the medium to long term. Authorities should work out measures to reverse it,” the report said.

Private consumption, which accounts for 60 percent of GDP, has played an important part in driving economic growth in the past decade, the report said.    [FULL  STORY]

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