Did you know that the world’s population grows nearly 1% each year? While this may seem small, our population reached 8 billion in 2022, and we are now on the road to reaching 9 billion people throughout the world. The 9 billionth baby could be only 15 years away, and that population increase will have an effect on our world.
Today, Africa is the fastest growing continent with the Sub-Saharan region projected to double by 2050. Asia is another continent contributing to an increase in global population with 1.42 billion people in China, 1.41 billion people in India, and 124 million people in Japan. On the other side, Europe’s population is projected to decline 15% by 2050. Countries like Bosnia, Croatia, and Latvia are some of the countries that are contributing to this population decrease across the country. What is interesting is that countries that are declining in population are some of the healthiest countries that have the longest life expectancies. This means that fertility rates are inverse to life expectancy and this contributes to why some countries are experiencing different trends in their population growth.
With some countries declining in population, it can be hard to imagine the 9 billion milestone is only over a decade away, but the global population is on the rise overall. With the population increasing so rapidly, there is some concern regarding how it will affect the global economy.
One of the main issues the economy faces as the population grows are labor shortages. By 2030 surpluses are set to become shortfalls and that can risk nearly $10 trillion. With more people living longer, the need for assisted living facilities,pharmaceuticals, and hospitals booms, but this means more stress on already stressed industries. What’s more, our population has already slowed global GDP growth, and with the 9 billion milestone in sight it is predicted it will continue to slow.
On the other hand, a growing population is not inherently negative. An older population increases overall productivity. With more people who are living longer, there are more people who are able to work and to grow our capital. Large countries can also lead to an increase in multinational corporations. These corporations and affiliates have already proven to be beneficial with 36% of global output coming from multinational corporations in 2016 alone.
The growing population will have many lasting effects on the economy and our world overall. Learn more about these changes in the infographic below: