Chart of the Day: Parental guidance
The relaxation of China's one-child policy is great news, but many families may decide to stay as they are, due to economic pressure and cultural norms. Couples can already have a second child if either parent is an only child, which includes many of the next generation of parents. Only 1.1 million of the 11 million couples eligible to have a second child under a previous policy relaxation in December 2013 applied for permission. Bearish working age population projections rely on current retirement ages and health standards. But Chinese in 2060 are unlikely to have the same retirement age as today, and life expectancy is also likely to rise.
Mark Matthews is an analyst at Bank Julius Baer