Shifting Demographics and Rising Debt Levels

By Blu Putnam, Chief Economist
Erik Norland, Senior Economist
CME Group

Demographic Changes Realign Economic Priorities

• ​​​​​​Nations with young populations focus on job creation as top economic priority.
• Health and wealth are twin pillars of aging nations with stagnant labor force.
• Lack of labor force growth could lead to higher wages in non-scalable industries.
• Demographic changes could determine economic priorities in mature nations.

Public and Private Sector Debt Rises Globally

• ​​​​​​Debt levels have risen by over 40% relative to GDP in U.S., Japan, Canada.
• Massive fiscal spending lifted U.S. government borrowing to over 20% of GDP.
• China’s household/corporate debt grew faster than government borrowings.
• Debt ratios could decline as the pace of economies reopening quickens.