- China’s long-term economic growth is at risk owing to a shrinking labor force and rapidly aging population, according to Oxford Economics. The country’s potential output growth could fall below 2% by the 2050s, as low birth rates and a rising dependency ratio strain productivity and public finances. While developed nations like the U.S. may buffer this with immigration, China and others face tougher challenges in sustaining growth and managing social support systems.
China may be the only nation that could rival America’s economic dominance. But its long-term prospects will potentially be cut off at the knees by a fundamental flaw: It won’t have the people to keep its growth going.
