Emerging markets and demographics

As we all know people are getting older in developed markets. This means that the workforce is becoming smaller. This is bad for the economy. The country with the biggest problem is Japan. The workforce of this country will shrink in the future.

But in most emerging markets the case is different. These countries were not involved with the second world war and their prosperity came later. This is why there are more young people and less baby boomer's getting old. This means that the workforce can expand. This is good for economic growth. A good example is India which has many young people. These younger workers also bring an entrepreneurial spirit, which is needed in the business world.

An other fact about emerging markets is that they are very populous. There are many people living there and the number of people is rising. This is the case in particular for India and China. The people there are still poor but the income is rising fast. This means huge consumer markets are forming.