Euro Area Policies: Selected Issues

July 8, 2016

Preview Citation

Format: Chicago

Euro Area Policies: Selected Issues, (USA: International Monetary Fund, 2016) accessed November 12, 2024

Summary

This Selected Issues paper discusses the impact of workforce aging on productivity in the euro area. The euro area population has aged considerably over the past few decades, and the process is expected to accelerate in the years ahead. At the same time, labor productivity growth in the euro area has been sluggish, posing risks to long-term growth prospects. It is estimated that workforce aging could significantly retard total factor productivity (TFP) growth over the medium to long term. Given current demographic projections from the Organisation for Economic Co-operation and Development, the aging of the workforce in the euro area could lower TFP growth by about 0.2 percentage points each year between 2014 and 2035. Appropriate policies can, however, mitigate the adverse effects of aging.

Subject: Aging, Central bank policy rate, Deposit rates, Financial services, Labor, Labor force, Population and demographics, Production, Total factor productivity

Keywords: Aging, Area budget, Central bank policy rate, CR, Deposit rate, Deposit rates, Euro, Euro area policy, Euro area treasury, Europe, Global, IMF staff calculation, ISCR, Labor force, Rate, Total factor productivity

Publication Details

Pages:

95
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/220
Stock No:

1EUREA2016004
ISBN:

9781498353694
ISSN:

1934-7685

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