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Falling birth rates raise prospect of sharp decline in living standards

People will need to produce more and work longer to plug growth gap left by women having fewer babies, report says
Without action, ‘younger people will inherit lower economic growth and shoulder the cost of more retirees’

Many of the world’s richest economies will need to at least double productivity growth to maintain historical improvements in living standards amid sharp falls in their birth rates.

A McKinsey report investigating the economic impact of declines in birth rates found that the UK, Germany, Japan and the US would all have to see productivity rise at double the pace seen over the past decade to maintain the same growth in living standards witnessed since the 1990s.

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