Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

High Cost of Population Fall

Changes in the makeup of Russia's population are set take a heavy toll on the economy, according to a PricewaterhouseCoopers report released Monday.

"The impact of a declining, aging population is particularly significant in restricting Russia's ability to increase its share of world GDP in a similar way to other large emerging economies," the report said.

The consultancy projected that the combined gross domestic product of the so-called E7 group of leading emerging economies -- China, India, Brazil, Russia, Indonesia, Mexico and Turkey -- will become 25 percent larger than that of the Group of Seven industrialized heavyweights by 2050. The G7 includes the United States, Japan, Germany, Britain, France, Italy and Canada.

Russia's rapidly declining working-age population will cause its economy to grow at a significantly slower rate than that of its peers, according to PwC. India and Indonesia are in a better position than Russia, PwC said, because they are currently experiencing a small boom in their labor forces.

Russia, which is expected to undergo the worst demographic crisis among the E7 countries, is not expected to approach the size of France's economy until 2050, PwC said.