Brazil’s population is aging rapidly, with 10.9% aged 65 or older in 2022, a rise from 7.4% in 2010, leading to economic worries.
Demographer Izabel Marri says Brazil is aging much quicker than developed countries.
For example, France and England took 200 years to age as much as Brazil has in 40 to 60 years.
This rapid aging brings up questions about Brazil’s social costs. Experts warn that many Brazilians don’t have enough savings for retirement or healthcare.
Previously, Brazil saw strong economic growth, thanks in part to China’s demand for its resources.
However, this boom ended in the 2010s, leading to an annual growth of less than 1%.
While education and life expectancy have improved, this hasn’t boosted workforce productivity.
Economist Marcelo Neri says Brazil has made social but not economic progress.
Additionally, Brazil’s population growth rate has fallen sharply. It dropped to a record low of 6.5% in 2022, compared to 12.3% in 2010.
Currently, Brazil spends 13% of its GDP on social security. This is more than Japan, the world’s oldest nation, which spends 10%.
Overall, Brazil’s fast-aging population poses a pressing challenge. Without adequate planning, this demographic shift could hamper Brazil’s economic future.
Background
To put this into context, Brazil has been grappling with economic issues for years. The end of the commodity boom in the 2010s hit the nation hard, disrupting its economic stability.
Now, with a rapidly aging population, the government faces more pressure to sustain social welfare programs.
These programs are crucial for millions who haven’t saved enough for their retirement or healthcare needs.
Historically, Brazil has had a young population, which was considered a demographic advantage.
A younger workforce is generally more productive and less dependent on social welfare, thus driving economic growth.
However, this “demographic bonus” is vanishing fast, putting increased stress on public finances.
In summary, the rapid aging of Brazil’s population is a ticking time bomb for its economy.
Immediate policy interventions are needed to address this looming crisis and to ensure long-term economic stability.