15:05

The International Monetary Fund has warned of a demographic timebomb for developed economies such as Britain, the USA and Japan that will require a radical rethink for immigration policies in response.

Identifying a mounting threat to economic growth and the welfare systems of the world’s most advanced countries, the fund said increasing numbers of baby boomers reaching retirement could potentially “overwhelm” these countries.



It said throwing open their borders to more immigrants and boosting the participation of women and older people could help to solve the problem, at a time when the working age population will be expected over the coming decades to support roughly double the number of elderly people as they do today.



The comments came as part of the funds World Economic Outlook.