Slow population growth will pose challenges in Brazil

Significance

The demographic survey also revealed that the centre-west -- whose economy is largely powered by the long-booming agribusiness sector -- is growing more quickly than any other region in the country.

Impacts

• A rapidly ageing population could prove a permanent ‘middle-income trap’.
• Low investment levels and education shortcomings will impose an even heavier economic cost in the coming decades.
• Efforts to reduce the country’s extremely high and entrenched levels of inequality will fall short without a productivity boost.