One newborn means 1.2 bln won in future production: report

SEOUL, Dec. 22 (Yonhap) -- A newborn baby will generate 1.2 billion won (US$1 million) in production and jobs for 1.15 people in its lifetime, a report showed Tuesday, amid growing concerns that South Korea's low birth rate could dent its overall growth potential

The report by the Ministry for Health, Welfare and Family Affairs is based on the
analysis of individual consumption patterns and their impact on related
industries in accordance with individual development.
Before entering school, a child generates production in such sectors as the
medical and childcare industries, and in the production of such foods as powdered
milk. A child's school years increase production in education services.
Working-age individuals have the largest impact on production, generating an
estimated 390 million won in daily consumption and marriage. Health, welfare and
leisure activities drive up production during the retirement period, the report
showed.
The report came as South Korea is struggling to increase its falling birth rate
as worries mount that a declining and aging population could hurt the nation's
growth potential by reducing its workforce and raising overall medical costs.
According to an earlier report unveiled by the government, South Korea's
population is expected to decline 13.1 percent to 43.2 million in 2050 if the
current birth rate continues.
The country's population is also rapidly aging. Those aged 75 or older totaled
1.89 million this year compared with 110,000 recorded in 1960. The figure marked
a 17-fold increase over the cited period, according to the report.
kokobj@yna.co.kr
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