The Impacts of Population Ageing on Economic Growth and Fiscal Sustainability in OECD Countries

This paper deals with the problem of population ageing and its impacts on economic growth and fiscal sustainability in OECD countries. The aim of the paper is to verify hypothesis hypothesis that higher share of older people over 65 years old on the working age population 15-64 years old has a negative impact on selected macroeconomic indicators focusing on economic growth and fiscal sustainability. For purpose of economic analyses the OECD countries are ordered by old people dependency ratio, from country with the oldest population Japan to country with the lowest old dependency ratio Mexico. This arrangement of countries is used in all figures for analysis different economic indicators. Belong OECD countries the Israel has the highest young people dependency ratio.