How could an aging population impact Italy's economy? Describe two potential effects that Italy must combat when facing this issue.

An aging population will have a negative effect on the economy of Italy.

Explanation:

Italy is a country that has an aging population. This is due to low birthrates and high life expectancy. Over time, there will be such a high percentage of elderly people in the total population that the economy will crumble, as all of the elderly people will live off funds from the state, while the number of workers will be so low that they would not be able to balance things.

In this kind of situation, the country will have to try its best and succeed in getting the birthrates at a higher level, but also to have almost exclusively a very highly educated and skillfull labor force that will contribute to exponentially higher profits for at least several decades. While this may not seem like a very hard thing to do, especially in a highly developed country, in practice it has proven that it is almost impossible, especially when it comes to getting the birthrates back on a higher level.