Development News Edition
Give Feedback

IMF research on demographics and interest rates in developing countries

Demographic developments have been regarded as one important cause of the long-term movement in global interest rates.


IMF 29 Jul 2018, 03:29 AM
  • The results suggest that future demographic developments will continue to apply downward pressure on the interest rates. (Image Credit: Twitter)

Demographic developments have been regarded as one important cause of the long-term movement in global interest rates.

This by IMF paper provides empirical evidence of the relationship between demographics and interest rates over a wide sample of advanced and emerging market economies.

It also finds that capital account openness limits the direct sensitivity of a country’s interest rates to its own demographics.

The results suggest that future demographic developments will continue to apply downward pressure on the interest rates in Asia which foresee a rapid aging.

The full report is available on IMF's website in English.


add banner

LEAVE COMMENT