Prior to the 1970s, most Asian populations were very young. However, this demographic profile has shifted significantly, with several Asian countries now poised to become “super-aged.”
Cambodia is well-positioned to capitalize on this demographic change. The country’s population is entering a period of rapid economic growth, fueled by a growing cohort of working-age individuals (30-49).
This demographic dividend will drive private consumption, increase demand for credit, and make Cambodia an attractive destination for labor-intensive manufacturing.
The global aging population, particularly in China and India, presents a vast opportunity for Cambodia. By 2050, there could be over a billion retirees worldwide, creating significant demand for tourism, aged care, and retirement services. Cambodia’s ability to cater to this market will depend on its infrastructure and healthcare development.
To support its economic growth, Cambodia will need to strengthen its capital markets. Developing local institutional investment will lead to increased capital deepening and boost the value of local equity and debt markets.
Key Points:
Demographic Dividend: Cambodia’s growing population of working-age individuals (30-49) will drive economic growth.
Increased Consumption and Credit Demand: The rise in the working-age population will boost private consumption and demand for credit.
Attractive Manufacturing Destination: Cambodia’s favorable demographics will make it an attractive location for labor-intensive manufacturing.
Global Aging Population: The growing number of retirees, particularly in China and India, presents a significant opportunity for Cambodia’s tourism, aged care, and retirement services sectors.
Capital Market Development: Strengthening local institutional investment is crucial for Cambodia’s economic growth and capital market development.
Cambodia’s demographic dividend presents a significant opportunity for sustained economic growth. By effectively leveraging its young, working-age population, the country can drive private consumption, increase credit demand, and attract foreign investment.
The growing global aging population also presents a vast market for Cambodia’s tourism, aged care, and retirement services. However, to fully realize this potential, Cambodia must invest in infrastructure, healthcare, and capital market development.
The information provided in this response is primarily based on reports from Mekong Strategic Capital. Their analysis highlights Cambodia’s unique demographic position and its potential to outperform its regional peers.