The Silver Economy: A Growing Opportunity for Latin America and the Caribbean
A New Era of Economic Growth
The Inter-American Development Bank (IDB) is developing a joint development agenda to address the challenges and opportunities arising from societies’ rapid aging, particularly in Latin America and the Caribbean (LAC).
The
The silver economy is a system of products, services, and economic activities designed to meet the needs of older people. It is based on the idea that older people have the potential to drive economic growth and job creation.
A Growing Demographic Challenge
The IDB said the initiative, which is being undertaken in collaboration with "la Caixa" Foundation and key international partners, comes as the population of Latin America and the Caribbean is aging faster than any other region. The percentage of people aged 60 and older is projected to more than double, increasing from 12 to 25 percent by 2050. This growth will bring the size of this demographic to 195 million people, one in four individuals in the region.
A Global Phenomenon
Worldwide, the silver economy generates about US$22 trillion annually, while in countries like Argentina and Colombia, it accounts for 40 percent of GDP. The Washington-based financial institution said this demographic shift is already driving significant economic and financial challenges and opportunities, as this population group also represents 40 percent of consumer spending and a rapidly rising share of pension payments and healthcare services.
A Call to Action
The IDB and its partners committed to this during the first Europe-Latin America and Caribbean Silver Economy Forum, which brought together over 200 global leaders, aging experts, and representatives from key sectors. The partners committed to working together on a common agenda aimed at supporting projects and initiatives that better meet the needs of this growing demographic group.
Conclusion
The silver economy presents a significant opportunity for Latin America and the Caribbean to drive economic growth, create jobs, and improve the well-being of older people. It is essential for the public and private sectors to work together to address the challenges and opportunities arising from this demographic shift.
FAQs
- What is the silver economy?
The silver economy is a system of products, services, and economic activities designed to meet the needs of older people. - How big is the silver economy?
Worldwide, the silver economy generates about US$22 trillion annually. - What is the projected growth rate of the silver economy in Latin America and the Caribbean?
The percentage of people aged 60 and older is projected to more than double, increasing from 12 to 25 percent by 2050.