South Korea has recorded the fastest rate of declining fertility and aging population among 37 member states of the Organization for Economic Cooperation and Development in the past five decades, a report issued by the Korea Institute for Economic Research revealed today.
"The fertility rate has contracted by 3.1 percent on average annually, as it decreased from 4.33 in 1970 to 0.98 in 2018, which is the fastest rate of fertility decline among the member states of the organization," Yonhap news agency quoted the report as saying.
The average annual growth rate of aging in South Korea was 3.3 percent from 1970 to 2018, the highest in the organization.
South Korea is expected to overtake Italy, which has the third-largest rate of aging in the organization, in 2036 as the elderly population is increasing at a faster rate than Japan, Italy and Spain, which have a high proportion of aging populations.
According to the institute, whenever the total fertility rate decreased by 0.25, the growth rate decreased by 0.9 percentage points, and when the percentage of the elderly population increased by one percentage point, the growth rate decreased by 0.5 percentage points, which means significant implications for the future of countries that suffer from declining fertility and high aging.
The institute called for measures in the medium and long term to prepare for the effects of low fertility rate and aging on growth potential and financial capacity.