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Adverse EU demographics will hinder potential growth


 Subject
 Europe's demographic changes.
 
 
 Significance
 The world population should approach 10 billion in 2050, according to the World Bank. It reached 7.5 billion in 2017. The trend veils large differences across continents, with the populations of Africa, the Middle East and Asia expected to rise sharply, although China’s population will start declining soon. The EU population is expected to drop from 512 million in 2017 to 500 million in 2050.
 
 
 Impacts
 The EU is not prepared for a future migration crisis.
 Low potential growth due to adverse demographics will cause public debt-to-GDP ratios to remain sticky in most EU countries. 
 The EU labour market may be close to peak employment, as growth is too low to create more jobs.
