Montevideo: Latin America is undergoing the world's fastest demographic transformation, according to a report published by Americas Quarterly in April 2026. The region's fertility rate has fallen to 1.8 births per woman, below the replacement level of 2.1, and the trend will worsen in coming decades: if it continues, the populations of Chile and Uruguay would shrink by one-third by 2100.

The accelerated aging poses enormous challenges for health and pension systems. Latin American countries have public health systems that were designed for young populations with a high prevalence of infectious diseases, but which are not adequately prepared for the growing burden of chronic non-communicable diseases like diabetes, hypertension, cancer, and dementia, which disproportionately affect older adults.

The Silver Economy

However, aging also brings opportunities. The report highlights the emergence of what it calls the silver economy: the set of goods and services aimed at people over 60. This market, which includes health, accessible tourism, adapted technology, care services, and leisure, is projected to reach 650 billion dollars in Latin America by 2033.

Sectors such as assistive robotics, wearable medical devices, telemedicine, and home care platforms are experiencing accelerated growth in the region. In Chile, for example, the number of technology companies for elderly care doubled between 2023 and 2025.

Challenges for Health Systems

Citigroup's chief economist for Latin America, Ernesto Revilla, warned that the region's main challenge is that it will age before becoming wealthy. European and Asian countries that aged did so when they were already high-income economies with robust welfare systems. Latin America is aging with incomplete health and pension systems and high levels of labor informality that leave millions without social coverage.