Composition of spending will change as populations age

The composition of spending changes as consumers age, with a greater proportion allocated to healthcare, food and drink, and less to education, transport and recreation. The experience of countries that have already aged significantly, such as Japan, suggests that this will have a significant impact on employment in these sectors in countries that are set to age rapidly over the coming decades. What’s more, this could weigh on productivity growth as the sectors likely to see the greatest increase in demand are typically more labour-intensive.