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Demographics and Consumption in Asia Toward 2050
What are the implications of demographics on total consumption and its sectoral composition in Asia toward 2050? Although the literature has studied total consumption and individual consumption categories separately, the research that studies both is scarce. Using household consumption surveys from seven Asian economies and UN population projections, we find that (1) the compositional effects of demographics on total consumption can be large when middle-aged population changes rapidly, (2) due to aging, some categories, including education and transport, may grow slower than others, like health, and (3) the implications are uncertain due to factors like economic growth, fertility, and migration.
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