40% of World Population Lives in 'Halved Growth Regions'... Faith in "Children Will Live Better Than Parents" Is Shaken

Per Capita GDP Growth Falls to Less Than Half in the Past Decade
Number of Affected Regions Increases to 80; 3.3 Billion People Impacted
Population with Declining Real GDP Surpasses 730 Million
Negative Outlooks Forming on Economy and Rewards

An analysis shows that the belief that "children will live better than their parents" is being shaken, as the number of people living in regions where per capita GDP growth rates have dropped to less than half has surged to two out of every five people globally.

Photo for article understanding. Pexels

According to a report by Yonhap News on the 17th (local time), citing the British weekly The Economist, “Between 2014 and 2024, a total of 80 countries and overseas territories saw their real per capita GDP growth rate fall to less than half the pace of the previous decade, up from 68 such areas previously.” The number of people living in these regions tripled from 1.1 billion—about one in six people worldwide in 2014—to 3.3 billion in 2024. Among them, more than 730 million people had an actual decline in real per capita GDP, meaning their living standards worsened.

China and Germany Join the ‘Unhappy Club’... Effects of Slowing Productivity and Increased Immigration

This trend spans a broad spectrum, from advanced economies like Canada to the poorest countries such as the Democratic Republic of the Congo (DRC), with various factors behind sluggish growth, including demographic shifts and differing economic policies. However, the common risk across these regions is the decline in living standards. Economic heavyweights such as China, Russia, Germany, and Brazil have recently joined this list, which The Economist refers to as the “unhappy club.” The per capita GDP growth rate in China for 2014–2024 was only about half of that for 2004–2014.

Here, the slowdown in productivity is combined with increased immigration. Among developing countries that grew on abundant resources, like Brazil, many have failed to recover after the commodity boom ended, while export-driven economies such as Uruguay and Chile have seen their income stagnate. In Germany, which has accepted a large number of immigrants, the average annual real income growth rate was 0.6%. The Economist pointed out, “While the inflow of immigrants is a long-term boost to the economy, it does not drive growth rates up in the short term.”

Generational Sense of Loss Feeding Populism... Concerns Over a Vicious Cycle of Political Instability

Right-wing opposition presidential candidate Flavio Bolsonaro is waving the victory flag while riding a boat during election campaigning ahead of the October general election. Photo by AP News Agency

In countries where a generation has grown up during this era of economic slowdown and then reached adulthood, the perception gap between generations has become more pronounced. China is a prime example. According to research by Stanford University, the share of Chinese respondents who agreed with the statement “hard work is always rewarded” plunged from 62% in 2014 to 28% in 2023. A survey by consulting firm Oliver Wyman of Chinese people born between 1995 and 2010 found that 56% worry about whether they will be able to enjoy a better life. By contrast, a 2015 Pew Research Center survey found that 70% of people born in the late 1980s had a positive outlook on the economy.

Some also believe this is influencing the political landscape. According to a study conducted last year by Professor Justin Gest and his team at George Mason University, which surveyed 20,000 Europeans, more than 40% of respondents said, “Our generation is at an economic disadvantage.” This response was most common among those in their 50s, followed by the 18–34 age group. The researchers analyzed that, in Western Europe, people who felt such generational deprivation were 55 percentage points more likely to vote for populist parties compared to those who did not feel that way.

The Economist noted, “In Brazil, young people aged 16 to 34 were the driving force behind President Luiz Inacio Lula da Silva’s victory in the 2022 election. However, with stagnant living standards, they are more likely to support right-wing rivals in the upcoming presidential election next month.” The publication cautioned that “political instability hinders growth and breeds further instability. In ten years, similar vicious cycles could occur in even more regions.” Professor Ruth Dassonville of KU Leuven in Belgium stated, “Economic slowdown can lead to political volatility,” adding, “When things get worse, voters blame the ruling party, regardless of their ideological leaning.”

This content was produced with the assistance of AI translation services.