January 9, 2017 - Technological advances and adoption in the world are moving at lightning speed, yet the global economy is approaching five years of sub-par growth, the longest stretch of time over the last three decades that growth has been below 3 percent. So why the paradox between the slow and the fast?
Several things are happening. First, the rate of global urbanization, which has led to rapid economic development and prosperity in the past, peaked in 2013 and is now on a slowing trend. Second, the world is getting older. In fact, the median age of the world’s population crossed the 30-year mark in 2016, with half of the world’s population now over the age of 30.
Population growth no longer boosts GDP the way it once did
Prior to 2008, during the peak years of globalization, gross domestic product (GDP) growth in the world’s top industrialized nations was solid and population growth added over half a percentage point per year to GDP growth.