Population Challenges

 

The Aging Population

Luxembourg's population has grown rapidly due to large immigration rates. However, there is a downside to this increase. The middle aged population is larger, as seen in the population pyramid. There are proportionately less children due to the large amounts of young adult and middle-aged people immigrating to Luxembourg. The problem is the aging population. Luxembourg's middle-aged citizens are getting older, and with fewer children, in a few years there will be too many older citizens. This will create a large dependency load, which could cause economic problems and heavy taxing. The birth rate is also slowly decreasing, adding to the problem.

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Luxembourg's increasing population but decreasing birth rate could have catastrophic effects on the country's economy.

Above points from Suite101, Beginner's Guide, Embassy of Luxembourg.