World Demography

"In this study, three main drivers of the current demographic challenge in the EU regions have been singled out and have been used in making up the sensitivity index through their main components :
- Total population change;
- Changes in labour-age population;
- Population ageing.

In a global frame of reference, Europe presents a peculiar demographic situation characterised by: i) very low or below-zero rate of population growth; ii) steady growth or initial decrease of the labour-age population; iii) ageing processes which involve the entire population as well as its significant parts, labour-age population in particular.
Four critical areas have been singled out in respect to the EU27 regions’ sensitivity to the demographic challenge by 2020:
1) The former Eastern Germany, with some extensions westwards;
2) The North-western part of Spain;
3) North-western and Central Italy, with some extensions southwards;
4) All the Bulgarian regions.

(...)Some changes in the future population dynamics are almost independent from the future macro-economic prospects and the relevant scenarios. The cohort turnover by 2020 shall modify the demographic structure and trends. Future migrations, internal or external to the EU, may change only partially those turnovers, so that their impact can be foreseen with large confidence.
The two alternative scenarios – the pessimistic one, which foresee a severe and perdurable economic recession, vs. the optimistic one, which imagines a fast recovery driven by innovation – mainly affect only the migration components of the demographic challenge. In that, much will depend on the ways and territorial distribution of the economic recession/development. Also the involvement and response of the neighbouring countries in those processes will have important returns on the foreseeable future of the European population.
Results of both scenarios confirm that European regions in 2020 will continue facing ageing and immigration. In the pessimistic scenario, ageing is more diffused and this negatively affects population change. In particular: social risks and costs of demographic change increase in more sensitive regions, while the future growth potential is limited in less sensitive regions. In the optimistic scenario, demographic constraints are moderately less stringent. In this context, more sensitive regions may experience increasing internal disparities in population ageing and agglomeration; less sensitive regions may experience lighter constrictions in WAP and in the future population growth. Both scenarios would require supporting social and economic adaptation of the different territories to demographic change, stressing the relevance of cohesion policy."

There is a great diversity of demographic dynamics across the globe. Some world regions will experience steady population growth, whilst others will face severe population decline. Population growth in Europe will slow down considerably relative to the United States and the emerging economies of China and India and Europe is the second most rapidly ageing world region, after Japan. Europe's immediate neighbourhood, the Middle East and North Africa region has the world's second fastest growing population, after sub-Saharan Africa. Demographic developments in South East Europe and in the European CIS countries will be similar to that in the EU. Future migration flows towards the EU will mainly arrive from the Mediterranean region, in view of differences in living standards and population trends exacerbated by natural resource constraints.

There are however wide variations in demographic patterns between and within Member States. Regional variability will depend on various factors such as fertility rates, migration flows, gender, health, disability and the demographic patterns of ethnic groups. Three important processes – notably population decline, shrinking working-age population and an ageing population - will have a marked effect on regions. These variables have been combined in a demographic vulnerability index, mapping the regions which will be particularly vulnerable to demographic challenges. Around one third of European regions will face population decline, located mainly in Central and Eastern Europe, Eastern Germany, Southern Italy and Northern Spain. The highest shares of elderly population will be found in Eastern Germany, North-West of Spain, Italy and some parts of Finland. In Central and Eastern Europe, the impacts of
ageing will be delayed owing to their younger population. However, significant increases in their old-age population are expected in the long run.

The share of working-age population is expected to be particularly low in several of the Finnish, Swedish and German regions. The magnitude of decline in the working-age population shows significant variations. Some regions in Bulgaria, Eastern Germany and Poland will be particularly hardly hit, with a decline exceeding 25% by 2020. Demographic change will potentially impact on regional growth through a shrinking labour force. The extent to which a shrinking labour force will constitute a drag on growth will largely depend on the educational attainment, productivity of the labour force and on future participation rates. Ageing will lead to significant increases in public expenditure, in particular on pension, health and long-term care. Ensuring access to high quality public services will constitute a major challenge for European Member States and regions. Increasing urbanisation will impact on environmental sustainability, in particular on the use of natural resources and eco-systems. The socio-economic integration of migrants and marginalised groups of society will be precondition to mitigate the complex effects of an ageing population.

The significant regional divergence in demographic patterns will most likely generate a substantial asymmetric socio-economic impact on European territories, which might further increase regional disparities in Europe.