Singapore is on the brink of a 'demographic time bomb'

Singapore's low fertility rate and aging population have put the country on a dangerous path.

If the course doesn't reverse, experts say it could become a "demographic time bomb."

These "time bombs" result in shrinking economies and breakdowns in the social fabric.

Over the last decade, low fertility and widespread aging contributed to an ailing economy in Japan, which economists have dubbed a "demographic time bomb."

Japan's population has shrunk by a million people and lost trillions in GDP, all within the last five years.

A new report finds Singapore could meet the same fate.

"The demographic time bomb only starts ticking in 2018 — it does not mean that it will explode yet," Francis Tan, an economist at the Singapore-based United Overseas Bank, wrote in a new report. "There is still a sizable percentage of working-age population supporting the economy. That said, one will have to understand that this cannot last forever."

The elderly will soon outnumber the young

Demographic time bombs are hard to defuse because they form over years — sometimes decades. They mark the culmination of younger couples repeatedly choosing not to have kids, and older citizens continuing to live well into old age.

According to UOB's projections, Singapore's elderly population in 2030 will eclipse...

22 Published By - Business Insider - 2017.12.07. 18:44
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