Bank of England governor tells Jackson Hole summit that ageing population is adding to the squeeze
Britain faces an “acute challenge” from its weak underlying economic growth and a drop in the number of workers since the pandemic, according to the Bank of England governor, Andrew Bailey.
A rise in the number of people defined as long-term sick and a big drop in young people in work – factors that he suggested might be intertwined – added to the squeeze created by an ageing population.
This increased the need for efforts to boost economic productivity, Bailey told the gathering of leading policymakers in Jackson Hole, Wyoming, at the weekend.
The emphasis needed to be on raising productivity growth, Bailey said. “Ageing is not going to turn around in the foreseeable future.” By 2040, 40 per cent of the UK population will be older than 64, he added.
