Russian Population Decline Bodes Ill for Economy

08 March 2006

Russia's aging population is likely to propel the country into a demographic crisis with profound effects on its emerging economy.

A new report by consultants PricewaterhouseCoopers avers: "The impact of a declining, aging population is particularly significant in restricting Russia's ability to increase its share of world GDP in a similar way to other large emerging economies."

PwC also believes Russia will have to wait until 2050 before it approaches the size of France's economy.

The consultants say the GDP of the E7 group of leading emerging economies - China, India, Brazil, Russia, Indonesia, Mexico and Turkey - will become 25% larger than that of the G7 major industrialized nations by 2050.

But, according to the report, India and Indonesia are better placed for growth than Russia because of a boom in the size of their potential workforces.

Data sourced from Moscow Times Online; additional content by WARC staff