However, the increase in government consumption can lead to a decline in aggregate productivity by shifting away economic activity in the more productive private manufacturing sector to the service sector.The study estimates the effect of population ageing on future productivity growth in Asia and finds that this effect could reduce the annual per capita GDP growth rate by 0.40 percentage points below its potential.
Evidence suggests that supporting older people to participate fully in social life will help them to remain active and healthy for longer into later life, as well as helping people to recover when they do fall ill.
Digital technologies can act as a broker for social experiences that are both stimulating and improve wellbeing.
If you were born the same year as the World Wide Web (1989), a woman could expect to reach 78.3 years of age, and a man 72.6 years.
A child born today, 30 years later, can add an extra five years to that prediction.
Many Asian economies are currently faced with the challenge of rapidly ageing population, which can be harmful to the economy in the long run.
The study, conducted by Dr Keisuke Otsu from the University’s School of Economics with the results published in , analysed the effects of projected population ageing on potential growth in Asian economies over the period 2015–2050 using quantitative assessment.Research shows that up to 18 per cent of UK adults feel lonely often or always, and older people are more at risk of social isolation than the general population.Loneliness can have as great an impact on someone’s health as smoking 15 cigarettes a day.Digital technology offers a golden opportunity to reimagine how we can support and empower an ageing population to lead fulfilling and healthy lives.Big data – huge data sets that can be analysed to identify patterns and trends –and artificial intelligence (AI) are heralding a new era of personalised medicine, where treatments are customised for individual patients, that will revolutionise how we manage peoples’ health.The paper concludes that population ageing is harmful for economic growth due to the decline in labour participation rate and its negative effect is significantly magnified through the increase in social security tax and the slowdown in productivity growth.This provides quantitative support for arguments for social security reform and innovation policies in ageing economies.The results of the study implies that governments facing population ageing have a challenging task to provide social security and public services for the aged while maintaining economic growth.This fundamental issue is common across all economies around the world.Companies like Canary Care are already providing discreet home monitoring, allowing older people to remain independent longer.Wearable devices like those from Scottish startup Snap40 monitor continuous vital signs at home and can alert healthcare professionals to someone deteriorating so they can intervene earlier.