Demographics and long-term growth – Franklin Templeton

Conventional wisdom points to young demographics being a driver of economic growth. The reality is more complicated.

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... The traditional view of demographics as a driver of economic growth is no longer appropriate, in Franklin Templeton's view. Qualitative factors override this assumption.

For aging countries, the challenge is primarily to ensure continuous improvement in educational standards, because their economies are becoming more knowledge and technology driven.

For countries with more youthful demographics, the challenge is similarly education-related, because they need to offer more than cheap unit labor costs. Demographics are not destiny, but can set parameters.

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