Romania's population is dramatically decreasing and aging, and in a decade it will reach the level it was at after World War II, according to the July report of the UN Population Division cited by HotNews.

Projections show that every ten years Romania loses about one million inhabitants. The sharp decline among the working-age population places the country among those with the most significant demographic decline.

The year 2031 will mark the point when the number of seniors will surpass that of young people, and the gap between the two generations will deepen thereafter. 

Experts attribute the population decline to three factors: increasing average age, decreasing birth rates, and increased access to medical care, leading to higher life expectancy. 

The average age of the population is rising not only in Romania but globally, as people form families and have children later in life. In Romania’s case, however, there will be a sudden shift in the ratio of employed to unemployed people, as the so-called “decretei,” i.e. the people born during the communist-era abortion ban that caused a disproportionate amount of births starting with 1966, start to retire.

The accelerated aging of the population will have several effects. Firstly, the economy will grow at a slower pace due to a lack of labor force and consumption. Secondly, the state budget will face a massive reduction in tax revenues. 

Simultaneously, if the current public pension system remains unchanged, the burden of state pensions will become increasingly difficult to manage. The health costs associated with an aging population will also increase.

radu@romania-insider.com

(Photo source: Radub85 | Dreamstime.com)