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Russian nation is aging

November 20 2007
03:39

Russia's population by 2025 will shrink by 12%, says Paloma EZLN Caserio, senior economist at the department of economic management and poverty reduction, regional government in Europe and Central Asia Region, World Bank.

At the presentation of a report on Russia's economy in November, she said that Russia's population by 2025 will shrink by 12%, in addition, continue to increase, the older population. According to them, by 2025 one in five Russians will be over 65 years.

Demographic trends will have a negative impact on labor supply: in the next 20 years the number of able-bodied population of Russia decreased by 3% (about 11 million people), said Paloma EZLN Caserio. Population decline and aging pose two major challenges: sustaining economic growth through increased productivity and control budgetary expenditures, the report says the WB.

Immigration may also help alleviate projected labor shortages in Russia, which would require more than 2.8 million immigrants to maintain the current proportion of the labor force and population, the report said.

To solve the problems caused by shrinking and aging population, Russia, according to the World Bank, it is necessary to eliminate a potential labor shortage by improving productivity. You also need to control the budget costs of aging populations, due to the further implementation of pension reform, restructuring the health system and health care, says RBC.

Meanwhile, in September, Deputy Prime Minister Dmitry Medvedev, reported that 6 months of this year, the birth rate in Russia was a record for the past 15 years. From January to June in the country of 142 thousand babies were born, which was "the largest number on record since the Soviet collapse," according to Pravda.ru .

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