In the past years, Japan is the fastest-aging nation in Asia. This year, Taiwan is set to beat Japan. Taiwan today is encountering a serious issue and it is not easy to deal with. The aging population in Taiwan is unfolding and it is unfolding fast.
Societe Generale economist Claire Huang pointed out that the working-age residents (those between fifteen and sixty four years old) is expected to shrink by 7.3% at the end of 2025. It doesn’t end there because CIA World Factbook revealed in 2014 that Taiwan is the third lowest country when it comes to fertility rates and number of children born/woman.
According to the National Development Council of Taiwan, the country will reach the “aged society” at the end of 2018. This is fourteen percent of the total population. If nothing is done, by the end of 2025, the “aged society” will be twenty percent of the total population.
If this trend continues, the economy will be affected – a 0.9 percent drop per year. The government also forecasted that the aging population will affect the Gross Domestic Product – a 2.5 percent slide at the end of 2025. To be able to cope up, the Taiwan government should boost its immigration as well as its output to compensate the loss.
Singapore has not yet come to this point but HSBC reported last year that the East Asian ‘tigers’ (which include South Korea, Hong Kong and Singapore) are expected to age even quicker than Japan. This is alarming but rest assured that the government is doing something to keep this at bay.