Europe’s population crisis could shave 4% off its GDP by 2040: Morgan Stanley

A man shelters from the rain under an umbrella as he walks past the Euro currency sign in front of the former European Central Bank (ECB) building in Frankfurt am Main, western Germany, on July 27, 2023 ahead of thr ECB's monthly announcement on eurozone monetary policy. (Credit: KIRILL KUDRYAVTSEV—AFP/Getty Images)

Europe’s demographic challenges are becoming a ticking time bomb for the region’s economy, with Morgan Stanley delivering a grim prediction for its effects on GDP.

Morgan Stanley says Europe’s aging population could shave 4% off the eurozone’s GDP by 2040 as people live longer and birth rates fall.