| Summary: | This Selected Issues paper estimates the fiscal impact of demographic changes in Portugal and the euro area over the period 2015-2100. Under the baseline projections of the United Nations, Portugal is among the countries in the euro area that is expected to be most hurt by demographic developments. During 2015-2100, its population is expected to shrink by about 30 percent while the old-age dependency ratio is expected to more than double, driven mostly by low fertility, higher longevity, and migration outflows. Age-related public spending would increase by about 6 percentage points of GDP under the baseline over the period 2015-50, and the public debt path would become unsustainable in the absence of offsetting policies
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