Bank of America Warns of ‘Super-Aging’ South Korea Losing Mojo
- Sees economic growth averaging 1.8% in 2030s, 1.1% in 2040s
- Calls for greater job flexibility, immigration, productivity
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South Korea’s average economic growth rate will fall below 2% in the 2030s as aging demographics sap the nation’s vitality and strengthens headwinds for the economy, according to Bank of America projections.
The country has the world’s lowest fertility rate and that is sowing the seeds for a deterioration of its economic dynamism, fiscal health, innovation and monetary stability. In a report published Friday, BofA economist Benson Wu said South Korea’s demographics are “falling off the cliff” and may drive economic growth down to 1.8% in 2030-2039 and 1.1% in 2040-2049.