A lack of reforms to tackle aging in the East Asia would come at a high cost, according to the bank. Pension payments as a share of gross domestic product could be as much as 12 percentage points higher by 2070.
Increasing number of Asians are getting old before being able to save for their retirement – concluded authors of new report published by World Bank.
Ageing of societies is one of the reasons of current slow down of global economy. It has been affecting Asian economies.
The effort of managing rapid raging in East Asia and Pacific while sustaining economic growth will require difficult policy choices observed in the introduction the report Axel van Trotsenburg, vice president of World Bank for Asia region.
The bulk of middle-income economies “will need to sustain high productivity growth and undertake structural reforms of social security, health and long-term care, and labor market policies,” according to the World Bank bank report.