Tokyo Fiscal Forum 2017 | Asian Development Bank Institute (ADBI) | 5 June 2017 | Tokyo, Japan

Many Asian economies will face a rapidly aging population which could lead to much higher levels of fiscal spending, especially for health insurance, long-term care, and pension benefits.

While Asian countries are showing robust economic growth, there remain uncertainties for medium and long-term growth. Demographic changes with an increasing old-age dependency ratio and rising inequality can have significant impact on long-term growth prospects, while lower-than-expected productivity growth in the global economy may cause negative spillovers. Moreover, a recent retreat from globalization and multilateralism pose serious uncertainties for short-term policy making. Demographic changes could also affect political decisions, especially on social spending for public pension and revenue mobilization. Interactions between central and local governments, and redistribution policies across different social groups are also factors.