Asia needs pension reforms for sustainable growth
ASIA is in a good starting position to thrive during the 2020s as it weathered the pandemic crisis in relatively good shape.
Allianz SE notes while economic activity in the region declined by less than 2% in 2020, gross domestic product (GDP) contracted by more than 4% at the global level and by almost 8% in Latin America.
The main reasons for Asia’s resilience, the multinational insurance group says, is robust growth of 2.3% in China, the only big economy of the world to grow at all during the pandemic.
According to Allianz chief economist Ludovic Subran (pic), while Asia has gained a headstart over other regions, it cannot ignore the looming demographic crisis.
“By ignoring the looming demographic crisis, it could easily forfeit its advantage. Next generations of Asians would have to pay a heavy price for such negligence, ” Subran says.
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