UK’s Lower Birth Rate May Lift Living Standards, Study Shows (1)

Shrinking populations could actually be good for the world’s richest nations, according to a paper that examined the impact of the UK’s expected demographic slump and counters conventional wisdom.

A study into population decline by David Miles, chief forecaster at the UK’s Office for Budget Responsibility, found that “the economic impacts are likely, on balance, to be positive” and “predictions of dire effects are implausible.”

Many rich economies are facing huge demographic challenges over the next 50 years as fertility rates decline and people live longer. Japan, Germany and Italy already have contracting populations. Similarly, Spain and France will ...