IMF: Two Solutions for the Economic Burden of Aging Populations

The International Monetary Fund (IMF) proposes two key measures to mitigate the economic impact of aging populations: increasing the labor force participation of individuals over 50 and improving their health.

According to a study by economists Bertrand Gruss and Diaa Noureldin, implementing these measures could add up to 0.4 percentage points annually to global economic growth between 2025 and 2050.

The IMF report emphasizes that Greece is particularly vulnerable to the fiscal impact of aging, with pension and healthcare costs expected to increase by up to 4% of GDP by 2050.

The IMF suggests revising early retirement incentives, expanding lifelong learning, enhancing the flexibility of employment contracts, and addressing age discrimination.

The study highlights that investing in the health and training of older people is crucial for the economic resilience and growth of countries.