Fertility in much of Latin America now below European levels

Fertility in several Latin American countries has fallen to low levels, comparable to Europe's, accelerating ageing and putting pressure on pension systems. Immigration can ease that imbalance, though it is not an automatic solution.

## Fertility is falling across the region

Latin America has gone from averages of 6 children per woman in the 1960s to rates close to the replacement threshold, set at **2.1**, according to World Bank data. Several countries are already below it.

**Chile** records one of the lowest rates, around **1.5 children per woman**, a level similar to European economies such as Portugal. Brazil, Costa Rica and Cuba have also fallen below replacement.

## Ageing is straining pensions

Fewer births and longer life expectancy point to a rapidly ageing population. The ratio between active workers and retirees is deteriorating across the region. In pay-as-you-go systems, where contributions from those in work pay current pensions, that imbalance is a direct threat.

Pension and healthcare spending is growing while the contribution base narrows. Governments face unpopular decisions: raising taxes, cutting benefits or raising the retirement age.

## The economic role of immigration

Immigration affects that balance. Flows of young workers can widen the contribution base and ease pressure on public finances. It is not an automatic solution: it depends on labour market integration and the sustainability of the flows.

Countries with low birth rates in Latin America are starting to look at immigration as a relevant demographic factor. Projections depend on multiple variables and any public policy decision should be based on up-to-date data.