Demographic concerns continue to grow for China ...Middle East

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To be fair, the shrinking population isn't just a phenomenon that is isolated to China. Many parts of the world are also facing a similar demographic problem. The reason why China stands out is that this is coming so quickly after they ended the one-child policy that was implemented from 1979 to 2015.

But putting that together with growing social pressures, it exacerbates everything from lifestyle satisfaction to quality of life management. And that is leading China down this path of an aging population, with certain quarters of the younger generation even preferring to move abroad.

Amid concerns of domestic demand being dead in the water, the demographic consideration here won't help much with the outlook over the next decade or so. Sure, this might not matter all too much in the immediate term. But the worst-case scenario is one that we all have come to be familiar with, that being the "lost decade" in Japan.

This article was written by Justin Low at www.forexlive.com.

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