One third of Cyprus’ population over 65 by 2060, EC report says

One third of Cyprus’ population over 65 by 2060, EC report says

Approximately one third of Cyprus` population will be over 65 years old by 2060 according to a European Commission report tilted β€œThe 2015 ageing Report, economic and budgetary projections.”

However, the ageing populations is not projected to have significant economic and fiscal impart to Cyprus` public finances due to reforms taken in the context of the island`s economic adjustment programme.

According to the report, issued every three years, Cyprus` population will reach 1.1 million by 2060 from 0.9 million in 2013 but the number of the elderly (over 65) will rise by an average 13.4% by 2060 reaching 27% of the total population which corresponds to 294.800 person. The ageing population describes the demographic conditions in Europe in general as well the countries of the developed world.

Furthermore, the elderly over 80 years will increase by an average 6.5% by 2060 reaching 9.5% of the island`s total population.

On the other hand children from 0 to 14 years will decline by an average 0.9% to 16.3% of the total population by 2060 from 15.4% in 2013. Prime age population (the persons between 25 to 54 years) will decline by 7.1% on average shrinking from 44.3% in 2013 to 37.1% of the total population by 2060.

The fertility rate will reach to 1.62 by 2060 from 1.4 in 2013.

However Cyprus has one of Europe`s highest life expectancy with 85.2 years for men by 2060 and 88,3 years for women.

Cyprus is projected to receive 7.900 net immigration flows or 0.7% of the population by 2060.

According to the report the demographic changes will have a minor impact to Cyprus.

Gross pension expenditure will marginally decline by an average 0.1% in the period of 2013 – 2060, but by 2060 will decline to 9.3% of GDP compared to 9.5% in 2013, according to the base scenario. Public pension expenditure in the adverse scenario will only rise by 0.1% on average reaching 9.6% in 2060.

Despite the ageing population, health care expenditure will rise by an average 0.3% in the period 2013 – 2060 reaching 3.3% of GDP. According to the adverse scenario, public health care expenditure will rise by an average 0.6% reaching 3.6% of GDP by 2060 compared to 3.0% in 2013.

Public spending on education are projected to follow a downward path, as they will decline to 6.1% of GDP by 2060 from 7.3% of GDP in 2013 marking an average decline of 1.2%.

Public expenditure for pension, health care and education are partly offset by GDP growth as Cyprus` economic output is projected to increase by 1.9% on average from 2013 to 2060.