The economic desintegration of China has begun
China and its reverse population pyramid
The last decades China has known a massive economic growth, which made it an economic superpower. This was mostly fuelled by its population explosion, the need for consumption grew every year and there was a huge opportunity for the people to get a job, because of the massive pool of people that were available on the labour market.
But, as of now, that situation has completely changed. The population of China is shrinking and will keep on shrinking the next decades. Because of a hugely aging workforce that will near retirement in the next years. This opposite pyramid is extreme in China, and it will be an economic massacre. Especially because 90 % of the processes for making food in China have an import factor.
This means that less economic activity will diminish wealth, and will make it harder and more expensive to import the necessary goods for the processes needed for most of the food. This makes China very susceptible for a period of famine, which will put the reverse pyramid even more under pressure.
The age group between 50 and 60 is the biggest, which is a huge bottle neck for China
A less globalised market
For the future we can expect a much less globalised market, which shorter supply chains. All because of the fact that China won’t be possible to export as they are doing now. This will force European markets and the USA to produce more themselves or get their resources from closer by.
This pivotal information for the investor, an investor that calculates this into his investments will make a lot more money than others in the next decade!