Greece's declining population poses threats to economy, healthcare, and pension systems
Research by the Economic and Social Council of Greece and data from the Hellenic Statistical Authority (ELSTAT) reveal a steady decline in the country's population, coupled with an aging demographic. According to ELSTAT’s October report, the number of births in Greece in 2023 dropped by 6.1% compared to 2022, reaching just 71,455. Although deaths also declined by 9%, the number of deaths in 2023 was still nearly double the number of births.
The data also indicates a shift in the age of mothers giving birth. In 1983, the majority of mothers were aged 20-24, whereas in 2023, the most common age group was 30-34.
The Economic and Social Council of Greece points out that when the fertility rate falls below 2.1 children per woman, the population begins to decline. Currently, Greece’s fertility rate has dropped to below 1.5.
To combat this demographic issue, the Ministry of Social Cohesion and Family has announced a €20 million plan aimed at increasing birth rates. The program includes free fertility tests, increased child benefits, more support for working mothers, and tax incentives, among other measures.
A "Demographic Crisis" for Greece and Europe
Yannis Paidos, President of the Economic and Social Council of Greece, emphasized that this demographic issue is not only a Greek problem but also a broader challenge for Western countries, particularly the European Union (EU). "Europe is increasingly fitting the label of an 'aging continent,'" he said, adding that Greece has faced this population decline for 30 years, but it has become more visible in the last decade.
Paidos warned that a shrinking population poses risks to the economy and strains health, social security, and pension systems, particularly as the average age of the population rises. He called for long-term strategies at both the national and EU levels to address the problem, stressing that achieving even modest improvements in fertility rates would require decades of consistent effort.
Encouraging Births and Addressing Aging Populations
State incentives to encourage higher birth rates are crucial, Paidos noted, adding that supporting family structures, ensuring gender equality in the workforce, and improving education on family and parenting are essential. He also advocated for policies aimed at encouraging families to have at least three children and for measures to reduce the average age of adoption.
Paidos pointed out that beyond boosting birth rates, ensuring that the elderly remain healthy and active is equally important. A healthier older population would contribute to the economy and reduce the burden on the healthcare system.
Challenges for the Pension System
Paidos also warned that Greece’s social security and pension systems, which were pushed to the brink during the 2009 financial crisis, are unsustainable in the long term without reforms. He stressed the need to accommodate the realities of an aging workforce, noting that it is increasingly unrealistic to expect manual laborers, teachers, and healthcare professionals to work until age 67.
Addressing Migration
Paidos acknowledged the challenge of managing an aging population alongside growing populations in Africa and Asia. He argued that while immigration could be part of the solution, it must be regulated based on the labor market's needs. The EU, he said, must develop clear policies on skilled immigration to fill labor gaps, particularly in fields where younger workers are required.
Conclusion
Greece, along with other European nations, faces significant challenges due to its declining and aging population. While the government has announced measures to boost birth rates and support families, the long-term sustainability of the country’s economy, healthcare, and pension systems will depend on broader and more strategic solutions, both at the national and EU levels.
AA
