Two significant demographic changes are occurring at the moment:

a)       Virtually all of the increase in global population will be in developing countries, and

b)       Todays high-income countries and China will become significantly older.

Changing demographics weigh heavily on the results influencing the growth of employment, demand trends, and changes in savings and investment behavior (and even productivity). The world will add 1.5 billion persons to its population between 2005 and 2030going from (about) 6.5 billion to 8 billion. Roughly 12 % will be living in high-income countriesdown sharply from the 18% in 1980 and 14.5% in 2005. Due to the differential in fertility rates, all but 40 million of this growth in population will occur in developing countries.

World population growth will be concentrated in developing countries in the coming decades

This disparity in population trends is also reflected in divergent paths for labor force and employment across developing and developed countries. Developed countries emloyment growth, though positive through 2010 at about 1.2 million new jobs per year, becomes negative thereafter, with an average loss of about 700,000 jobs between 2010 and 2015, jumping to an annual average loss of over 3.2 million between 2025 and 2030.6 Labor force growth is still rapid in developing countries - though on a declining trend throughout the period.

Per Capita Incomes Will Begin to Converge Across Countries

At todays income in PPP terms, the average developing-country resident receives about 16% of the average income of high income countries$4,800 versus $29,700 .This ratio would rise to 23 percent in 25 years time, representing an average developing-country income of $12,200 versus $54,000 for high-income countries.

There is great variance across countries. Chinese incomes would rise from 19 percent of the average high income level to 48 percent (in PPP terms), a significant narrowing of the gap, and would achieve an average income close to the lower range of todays poorest high-income countries. Per capita incomes in India are likely to rise much more slowly from 11 percent in 2005 to 17 percent in 2030due to faster population growth and more measured expansion in real GDP.