Economic Effects of Demographic Ageing

• Author: Litra, A.V.
• Position: Faculty of Economic Sciences, Transilvania University of Brasov
• Pages: 229-234

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 7 (56) No. 2 - 2014

ECONOMIC EFFECTS OF DEMOGRAPHIC

AGEING

Adriana V. LITRA1

Abstract: Romania goes through profound changes due to unprecedented

demographic developments. As a result of declining birth rates and

emigration after 1990, by the year 2060 is loo ming a possible doubling of the

percentage of the population 65 years and over, from 15 to 30%, and the

working age population to fall by about 30 percent. Deterioration of the

relationship between labour force and i nactive population leads to pressure

on the public budget and tax system, strains on pension and social security

systems, redefining consumer preferences, type and size of the saved or spent

amounts, higher demand for healthcare services, increasing poverty risk for

elderly households.

Key words: demographic ageing, age dependency ratio, median a ge,

population projections.

1 Faculty of Economic Sciences, Transilvania University of Braşov.

1. Introduction

Romania's population structure is in a

continuous change and ageing. Evolution

of demographic phenomena of the last two

decades, characterized by maintaining low

fertility, slight increase in life expectancy

at birth, and a negative balance of out-

migration decreased the country's

population. Demographic decline is

accompanied by deteriorati on of the

population's age structure compared with a

young population, therefore having

different proportions of the population in

the school, employed in work or the

retired, generating different medical needs,

different consumer preferences, and

different patterns of leisure. The age

structure of a population is closely related

to the way in which that population lives.

In addition, reducing the population

segment that contributes to overall

economic output growth outlook worsens

and brings challenges in terms of number

of people involved in providing health

services and care for the elderly.

2. Demographic developments and

current situation

A picture of the ageing degree of the

Romania population at the moment, but

also of its evolution (from 1990 onwards)

can be achieved by following several

aspects:

- Romanian population age structure by

major age groups (under 15, 15-64 and 65

and over) (table 1)

Young population (under 15 years)

decreased steadily during 1990 to 2014,

from 5,508.5 thousands to 3,159.7

thousands, while reducing their share in

the total population (from 23.73% to

14.86% in 1990 at January 1, 2014).