Demographics and Demand
Global Ageing, the Evolution of Consumer Spending and the World Economy
Wayne Best, Visa Inc.
As wealthy consumers age, they tend to shift their spending from physical goods to experiences and services, notably health-related. Population ageing could, therefore, increasingly influence what is demanded and sold globally, with a range of unexpected implications. These include shifts in geopolitical power, as emerging economies, which rely on exporting goods, could experience declining demand, and widening income inequality, as jobs in service industries tend to be relatively low-paying. Studying the likely shifts in demand as populations of countries age at different rates could help to address issues as diverse as economic growth, youth unemployment and the future course of globalization.