Baltic States ‘Most Vulnerable’ to Ageing Population
- New Europe Investor
- October 08, 2015
A report by Moody’s Investor Services has highlighted the Baltic states of Lithuania, Latvia and Estonia as being highly vulnerable to the effects of an ageing population.
The countries GDP per capita are far lower than the EU average and not rising quickly enough to provide for the fact that their population is rapidly ageing. To compound the fact, the countries are still experiencing vast levels of emigration which is depleting their workforce even further.
The number of pensioners in the Baltic states could be as high as 29% in 2060, compared to 18% in 2013.
The report from the American credit rating agency also pointed to volatile levels of economic growth and heightened geopolitical concern as economic risks for the future.
Finally, the report highlighted many positives for the economies, that include institutional strength, resilient government balance sheets and a robust recovery from the global financial crisis.