Where are the opportunities from decaying demographics?

Where are the opportunities from decaying demographics?

Peter Kirkman, manager of the JPM Global Consumer Trends fund, explores what Japan's ageing population and the rapid emergence of Asia's middle class means for investors.

Over the last 50 to 60 years, China has been one of the most successful countries in reaping the ‘demographic dividend’. China, and other countries like it, have taken advantage of a youthful, growing population and a favourable working age-to-dependant ratio to drive economic transformation. This has lifted millions of rural poor out of a subsistence existence and allowed them to reach rising levels of affluence. However, as in the case of Japan, demographics can also be a headwind. Failure by Japan to supplement this age-related dividend with greater labour participation of women and a...