An aging population and related public spending on pensions and health care could put significant pressure on Russian government finances and lead to a strongly rising debt burden by the middle of this century in the absence of policy measures to contain spending, according to Standard & Poor`s Financial Services.
”We project Russia`s elderly population, aged 65 or over, will rise to 21% of the total by 2050 from 13% at present and that the working-age population will decline in this period,” S&P reports.
According to the agency, this would lead the Russia government`s age-related expenditures to rise to 19% of GDP by 2050 from about 13% today in the absence of any reforms to rein in expenditures.
In addition, net general government debt would rise to 262% of GDP by 2050 in this scenario.
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