On June 1, the Bank of Korea released an analytical report examining the effects of demographic changes on Korea’s slowing consumption growth. According to the report, the recent stagnation in private consumption is not only due to cyclical economic factors but also significantly influenced by structural changes , particularly rapid aging and population decline , which have been key contributors to the slowdown in consumption growth. How Demographic Changes Affect Consumption Demographic shifts impact consumption through various direct and indirect channels: Declining Population : A shrinking population reduces economic growth potential and weakens consumer demand, leading to limitations in household income and overall market size. Rising Elderly Population : As the proportion of older adults increases, the average propensity to consume decreases , while savings and investment tendencies grow. In Korea, the consumption rate of individuals aged 60 and older has seen the most ...