LIST OF ABBREVIATIONS 7

LIST OF FIGURES 8

EXECUTIVE SUMMARY 9

1. INTRODUCTION 11

2. ECONOMIC GROWTH IN THE FACE OF WORKFORCE AGEING 12

  2.1. Theoretical arguments 12

  2.2. Empirical studies 13

    2.2.1. Population decline 14

    2.2.2. Longevity 14

    2.2.3. Declining and ageing workforce 15

3. ECONOMIC GROWTH IN THE FACE OF AUTOMATION AND AI 18

  3.1. Effects of automation on employment 18

  3.2. Effects of automation on economic growth and well-being 18

  3.3. Quantifying the economic growth effects of AI 19

  3.4. The potential of AI in the face of workforce ageing 19

4. THE 2024 AGEING REPORT 21

  4.1. Demographic projections 21

  4.2. Labour productivity and potential GDP Projections 22

5. STRATEGIES TO COPE WITH THE CHALLENGES AHEAD 23

6. SUGGESTIONS FOR THE AGING REPORT AND POLICY RECOMMENDATIONS 25

  6.1. Suggestions for the 2026 Ageing report 25

  6.2. Policy recommendations 26

7. CONCLUSION 27

REFERENCES 28

ANNEX 35

  A. NATIONAL TRANSFER ACCOUNTS 35

  B. MEASUREMENT CHALLENGES 37

  C. Generalizing the Method for Growth Projections to Capture Automation 38