Latin America’s Fading Demographic Tailwind
The region has anchored part of its growth on an age bonus. As it wanes, what needs to happen to solidify the economic progress?
Since 1960, Latin America and the Caribbean have seen a growing working-age population and a shrinking share of children, two factors that have contributed to the growth of income per capita, which more than doubled from $3,336 to just over $9,000 last year. As AQ’s recent special report illustrated, that lift is running out, and in some countries, it is even starting to reverse. New research underscores the importance of planning for this. Economists explaining the region’s growth normally point to productivity, investment, institutions, and commodity cycles. Age structure rarely...
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