Seminar in San Salvador – Macroeconomic relations between growth and demographic bonus

In Mexico, GDP growth is not always directly related to the employment rate. Despite the favorable demographic conditions, characterized by a fall in the dependency ratio, real GDP growth per capita has been very low. In addition, the performance of real GDP per capita leads to a large fall in real GDP per worker since the beginning of the 70s. The growth in capital accumulation contributed equally to GDP growth, to the increase in educational level, and growth in productivity.

The life cycle period in which income is greater than consumption, is very short (31 to 52 years in Mexico), which poses challenges for the exploitation of the demographic bonus, as the need to increase the income of young and older adults.

If the demographic dividend is a window of opportunity, active life of workers is a very short window of opportunity to generate income.