Population Aging and Economic Growth

Currently, China is experiencing the early phase of population aging. Therefore, opportunities, such as ‘demographic profit’ and ‘demographic dividend’, provided by the ‘post golden age’ of age-structure transformation should be seized in order to prepare for ‘demographic deficit’ and ‘demographic debt’ that might emerge in the later phase of population aging. Meanwhile, we should encourage more consumption from the elderly and accelerate the establishment of the social security system and its rules, while transforming the pattern of economic development from investment and foreign trade-oriented to consumption-led; analysing the dual impact of population aging on savings, investment, human capital and technological progress by drawing on both positive and negative examples from other countries, making full use of advantages and avoiding disadvantages; tapping the human resource potential of the elderly; and giving full play to the positive effect of population aging in breaking out of the ‘middle-income trap’.