Moody’s warns against the impact of demographics changes in Slovakia
Ratings agency Moody’s warns against the impact of dramatic demographics changes in Slovakia, Czechia, Hungary, and Poland. Between now and 2040, their population will decrease by 2.5m people to 61m and the working-age population will shrink by 5m. Population ageing will influence economic growth and public finances as well as the pension and healthcare systems. Slovakia and Czechia have good capacity to withstand pressures from the demographic shifts and their potential growth rate is expected to remain significantly above the EU average. An ageing population will hurt banks’ profits through lower demand for loans, while the impact on the corporate sector will be mixed.