The World Bank has published a report calling on South Asian countries to create more productive jobs and strengthen health care and pension systems as their demographic dividend diminishes. The region’s working-age population of 1.17 billion is projected to peak in less than a decade. The annual contribution of demographics to GDP growth is expected to fall to 0.1% by 2050. Bangladesh’s working-age population share is projected to peak in 2045, giving it more time than most regional economies to benefit. However, limited formal job creation, low female labor force participation and human capital gaps constrain those gains. About 84% of workers, roughly 58 million people, are informally employed, as are 44% of graduates. The report recommends expanding access to finance for micro, small and medium enterprises and streamlining regulation to support productive employment. Improving education and skills and removing barriers to women’s employment are additional priorities. South Asia is projected to become an aged region by 2049, with 14% of its population aged 65 or older. Bangladesh is expected to reach that threshold in 2051. Pension coverage remains limited: only 17% of South Asia’s working-age population contributes to a pension scheme, and only 10% of older people receive pension benefits, the lowest coverage globally. Stronger health care, long-term care and pension systems would support an aging population, while greater savings and investment could help raise productivity.

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