Asian pensions low proportionate to GDP - ADB Institute | Daily News


 

Asian pensions low proportionate to GDP - ADB Institute

The Asian region has a problem with a low value of pension holdings proportionate to Gross Domestic Product. This coupled with the ageing population and the low rates of development pose a risk following the economic downturn caused by the COVID-19 pandemic.

19 of the 49 Asian members of the Asian Development Bank have fertility rates below 2.1. It is predicted that in 20 years all Asian ADB countries will have fertility rates below 2.1. Senior Vice President Centre for Strategic and Industrial Studies Daniel F. Runde said: “the countries are getting old before they get rich.” China will shortly have over 35% of its population over the age of 60.

These findings were expressed at the ADB 53rd Annual General Meeting held virtually on 17th September. Around 20% of Thailand’s GDP is linked to tourism which has been hard hit by the crisis. The suicide rate in the country has risen by 22% in the last six months.

Dean ADB Institute Dr Tetsushi Sonobe said that the elderly were particularly hard hit by the health impact of COVID and that there was a need in the region to create social security nets.

Deputy Dean ADB Institute Chul Ju Kim said that pension funds had been deeply impacted by the downfall in the economy and the need for people to make withdrawals and halt contributions.

Sri Lanka was noted as a region that did contribute Rs 5000 to needy people during the pandemic. The large informal sector with no pension saving and little social security net in the broader geographic region is a cause for concern to the economists.


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