Kathmandu [Nepal], November 4 – The World Bank has warned that South Asia has less than a decade to capitalise on its large working-age population before demographic changes begin to slow economic growth.
In its latest report, Demographic Change in South Asia: From Tailwinds to Headwinds for Development, released on Tuesday the World Bank said the region’s working-age population of 1.17 billion is approaching its peak and will begin shrinking in less than a decade.
By 2049, people aged 65 and above are expected to account for 14 per cent of the regional population. The contribution of demographic changes to annual GDP growth is also projected to fall to 0.1 percent by 2050 from 0.4 percent since 2000.
The report highlighted a significant employment gap with only 60 percent of the working-age population employed and 88 percent of workers engaged in informal jobs.
In Nepal more than 60 percent of workers are informally employed earning significantly less than those in formal employment. The World Bank also noted that remittances account for around 25 percent of Nepal’s GDP while returnee migrants face lower salaries for about three years after returning.
The bank urged South Asian governments to create productive jobs, improve skills and healthcare, expand pension coverage and remove barriers to women’s employment to sustain economic growth.
