The Influence of Population Aging on Economic Growth

Abstract

Population aging has emerged as a critical demographic challenge worldwide, profoundly impacting economic structures and growth trajectories. This study aims to systematically examine how aging influences economic growth through multiple mechanisms, including labor supply, savings and investment, fiscal pressure, and consumption patterns, identifying effective policy measurements. To address these questions, the study employs a mixed-methods approach combining quantitative analysis of latest demographic and macroeconomic data from sources such as the UN and China’s National Bureau of Statistics, alongside comparative case studies of Japan and Germany, which can be utilized as a precedent reference. The results indicate that aging exerts significant downward pressure on labor supply and national savings, while increasing fiscal burdens through pension and healthcare expenditures. Moreover, consumption structure shifts toward elderly-oriented services and products, giving rise to the ‘silver economy’. More importantly, the comparative analysis reveals that countries adopting integrated strategies, such as Germany’s emphasis on vocational training and high-skilled immigration, which exhibit greater economic resilience than those relying on isolated measures. Overall, this research demonstrates that proactive, multi-dimensional policies, including pension system reform, promotion of lifelong learning, and technology-driven productivity enhancements, which are essential elements to mitigate the adverse effects of aging and harness potential opportunities for sustainable growth. The findings offer evidence-based insights for policymakers in China and other aging societies seeking to navigate demographic transitions.