Fiduciary Trust Company’s Post

In Fiduciary’s latest insight, we highlight how the decades-long decline in fertility rates is impacting the global economy and financial markets. https://lnkd.in/e4EjByAW

In Fiduciary’s latest insight, we highlight how the decades-long decline in fertility rates is impacting the global economy and financial markets. https://lnkd.in/e84bkvnv

 In Fiduciary’s latest insight, we highlight how the decades-long decline in fertility rates is impacting the global economy and financial markets. https://lnkd.in/eqZrMpyM

In the realm of economics, the winds of change often blow from unexpected directions. One such gust is the drop-in #birth_rates across wealthy nations, as highlighted by the OECD. From a bustling 3.3 children per woman in 1960 to a serene 1.5 in 2022. 📊 This demographic downturn heralds a new era where fewer workers entering the fray, #labor_markets could tighten, leading to wage inflation and impacting business costs. Moreover, the shrinking consumer base of the future could necessitate a pivot in marketing strategies, focusing more on quality over quantity. 💼 For companies, especially those in sectors like education, toys, and baby products, rethinking their target demographics is crucial. Embracing digital transformation and exploring untapped markets become vital survival tactics. 🛍️ Expect a shift towards experiences over material goods as smaller families seek meaningful ways to spend their time and money. Brands that align with values of sustainability and personal growth are likely to resonate more with this evolving consumer psyche. Let's embrace this demographic shift with innovative strategies and a forward-thinking mindset! #KPMGElevate #KPMGValueCreation #KPMGInsights #Population #BirthRate #LaborMarkets

This The Wall Street Journal piece was a fascinating read, as I've been trying to better understand the changing demographics in the USA and how it will impact #CRE use and values over the next several decades. The article below echoes many themes in an excellent and thought provoking book I read recently, George Friedman's "The Next 100 Years". Note the book was written nearly a decade ago and is proving to be quite prescient. Declining fertility rates around the world should not be taken lightly for two reasons: First, a reduction in the working age demographic will put additional strain on the already constrained labor force. This will, in turn, drive up the cost of labor and production. Though not imminent, when the tipping point is hit, labor constraints will put upward pressure on inflation. Perhaps AI will come to the rescue here, but that remains to be seen... Second, the share of "producers" will shrink in comparison to the share of "consumers". In plain English, as governments and private institutions grapple with the financial burden of supporting a growing number of retirees, they may need to borrow more money to cover pension obligations and other expenses. This increased demand for borrowing can drive up interest rates as lenders seek higher returns to compensate for the perceived risk of lending to entities with substantial liabilities. What this will mean for #CRE remains to be seen. Higher for longer interest rates, as a result of the aforementioned variables, will result in higher reversion cap rates than most Sponsors have been accustomed to over the last fifteen years. Declines in population will result in different demand patterns for certain types of real estate while increasing demand for others. Smart sponsors should be thinking about this now to be better prepared for the imminent trends a declining birth rate will have on the broader economy.

In more than half of the world’s countries and areas, which account for about two-thirds of the global population, fertility rates have dropped below the replacement level of 2.1 children per woman.  This demographic shift poses significant challenges for many economies, from shrinking workforces to increased pressure on social support systems.  Explore our latest visual article that dives into the global fertility decline and its economic impact.  https://lnkd.in/emGfjMxY

The world population will just keeping going up, right? Well... some demographers are now thinking that we may have dipped below the global fertility rate needed to keep world population flat or growing. Most developed nations have been below that level for quite some time. Now, countries like India and China are dipping below that rate. Some demographers think the world's population could start shrinking within four decades. Is this bad news? Good news? Probably depends on who you ask. Generally, if you're looking for global economic growth, adding more people is a really good way to get there. But if you ask climate scientists, it would be quite helpful if the world population stopped growing. We've already stressed the planet out quite a lot, and adding more billions of people definitely won't help. Some governments are looking at it as a big problem and trying to encourage ways for people to have more children. Especially those countries with an aging population who are in danger of not having enough workers. What do you think? Should the world aim for more policies to encourage population growth? Or should we allow for things to happen naturally, even if that means a shrinking population (and potentially a shrinking global economy)? #economics The Wall Street Journal #economy #demographics #aging #population #fertility #growth #climate #agingworkforce #workers https://lnkd.in/egdm3YdV

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗮𝗻 𝗔𝗴𝗶𝗻𝗴 𝗪𝗼𝗿𝗹𝗱 By 2050, one in six people worldwide will be 65 or older, with many developed nations already experiencing high median ages and declining fertility rates. In the U.S., the ratio of workers to Social Security beneficiaries has dropped from 5.1 in 1960 to 2.7 in 2024. This trend and Medicare funding challenges highlight the need for proactive financial planning. As we navigate these economic changes, planning effectively for retirement and managing investments to adapt to shifting demographics is crucial. Our team is here to help you understand these impacts and develop strategies to secure your financial future! How might these trends affect your financial goals, and what steps can you take today? Contact us for a free consultation, and personalized advice and strategies! cereusfinancial.com #FinancialPlanning #SocialSecurity #Medicare #InvestmentStrategy

The global population is getting older and older. This opens new doors for investors: from healthcare to automated solutions. Discover how demographic changes are creating new investment trends. #investmentopportunities #demographicchange #futureinvesting

The global fertility rate has been declining for decades, presenting various challenges. 1. 📉 Aging Population: A lower fertility rate leads to an increasing proportion of elderly individuals, straining healthcare, pensions, and social security systems. 2. 🧑💼 Workforce Shortages: Fewer young people entering the workforce can slow economic growth and innovation, especially in industries reliant on youthful labor and creativity. 3. 📊 Economic Stagnation: Declining consumer bases and reduced spending by younger demographics may hinder economic expansion. 4. 🏥 Healthcare Demand: Aging populations increase the demand for medical services and long-term care, stretching healthcare resources. 5. ⚖️ Dependency Ratio Imbalance: A higher ratio of dependents (elderly) to the working-age population creates financial burdens on governments and taxpayers. 6. 🌍 Decline in Global Influence: Nations with shrinking populations may lose geopolitical influence due to reduced economic and military capacity. 7. 🏙️ Urbanization Shifts: Population decline can depopulate rural areas while concentrating older populations in cities, altering urban planning needs. 8. 🧑🤝🧑 Cultural Shifts: Smaller families and aging societies can lead to the erosion of traditional cultural norms centered around large families. 9. 💡 Innovation Slowdown: A reduced youth population may lead to slower innovation and fewer entrepreneurial ventures, impacting industries like technology and pharmaceuticals. 10. 🌐 Immigration Pressures: Countries may rely heavily on immigration to sustain population levels, potentially creating social