Estonia's Population Set To Decrease 10% By 2040 ({{commentsTotal}})

The nation's population has been shrinking over the last two decades. Source: Photo: Postimees/Scanpix

According to the latest report by Statistics Estonia, as the population ages, the retirement age will have to be raised.

Statistics Estonia predicts that the Estonian population will decrease 10 percent by 2040.

There will be about 30 percent less 20-49 year olds in 2040 than in 2014. Meanwhile, the number of people between 65-79 is set to increase by 20 percent.

Emigration is one of the reasons why Estonia's population is declining, as most emigrants from the country are young or middle-aged. According to Yngve Rosenblad, a data analyzer at Statistics Estonia, it is most concerning when the emigrants are young women.

"When the young women decide to leave Estonia, it is likely that their children will be born elsewhere," she said. Rosenblad added that some women decide to return to Estonia, but majority do not.

Statistics Estonia predicts that due to high number of retired people in future, the entire business sector catering for older generations will expand, creating new job opportunities for both young and old.

The retirement age will also have to be raised for the national economy to remain sustainable, the report said, from 65, which it is currently, to 70 by 2040.

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