The last time humanity shrank was in the 14th century, during the Black Death. It’s about to happen again — this time by choice, not plague.
Demographics is the silent shock ahead.
We have spent decades obsessing over financial crises. The risks ahead are of a different order. Climate, geopolitics, and demographics are physical risks: slow-moving, without precedent, and possibly existential. They propagate through supply chains and societies. There is no weekend bailout for a shuttered factory, no swift reset for a dried-up river basin.
For demographics, global fertility rates are collapsing far faster than expected. Turkey, India, China, Colombia—countries once assumed to be demographic engines—are now below replacement. Instead of 10 billion by century’s end, humanity may peak below 9 billion in the 2050s. And then shrink, something unseen since the Black Death.
This is not a temporary shock but a structural inversion of the growth story on which our economies, politics, and social contracts rest. An aging world means strained social systems, labor shortages, and geopolitical recalibration. The “population bomb” that never arrived has given way to a silent implosion.
Financial crises can be charted on a Bloomberg screen. Physical risks—demographic decline among them—require new tools, new models, and a sober recognition: the next shocks will not just rattle markets, they will reshape the world.
Source and illustration from The Economist.