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[Monitor] Aging population threatens to undermine growth

July 7, 2017 - 16:58 By Korea Herald

South Korea’s rapidly aging population could become a hurdle to economic growth in the near future, according to economists at the Bank of Korea.

According to central bank’s data, the number of South Koreans over 65 accounted for 12.8 percent of the population in 2015 and that figure is projected to grow to 28.7 percent by 2035 and 42.5 percent by 2065.

As the economically active population falls, the growth rate could reach zero percent after 2035, Ahn Byung-kwun, a BOK economist, said.

The country’s economy is forecast to grow 1.9 percent on average between 2016 and 2025 before falling to 0.4 percent on average between 2026 and 2035.