Economic impacts of population ageing in Latin America and the Caribbean: challenges and opportunities

This document analyses the economic implications of rapid population ageing in Latin America and the Caribbean, highlighting both the challenges it poses for economic growth, the labour market, and the sustainability of social policies, as well as the opportunities it presents to boost various economic sectors in the region. Based on demographic and economic data, the ongoing structural transformation is examined, with particular emphasis on the increase in the population aged 65 and over. The study reviews the conceptual approaches that enable an understanding of the various dimensions of ageing in relation to production, consumption and intergenerational transfers, such as the silver economy, the longevity economy, and the generational economy. Sectors with potential for economic growth in the context of population ageing have been identified, including health care, caregiving, the pharmaceutical industry, the financial sector, technology, tourism, and adapted housing. Through the analysis of the demographic dividend and the use of the National Transfer Accounts (NTA) methodology, the document assesses the projected impacts of ageing on economic growth and highlights the role of productivity and labour force participation —particularly among women and older persons— as key factors to mitigate these effects. The study also examines innovative public policies in the Republic of Korea and other countries worldwide that may serve as benchmarks for Latin America and the Caribbean. The document concludes that seizing the economic opportunities of population ageing requires incorporating demographic change into public policies, investing in health, social protection, and care systems, as well as recognizing the rights and contributions of older persons, from a life-cycle perspective.