Question

If the proportion of dependent age groups increases in the composition of population, how will it affect the economy of a country?

Answer 1

1. If the proportion of dependent age groups increases in the composition of population, it will have an adverse effect on the economy of a country.
2. The reason is if the working population is less, the economic activities will reduce and will have a direct impact on the economic growth and development of that nation.
3. The production will decrease in comparison to consumption leading to inflation also the per capita income and GDP will decrease.
4. Export will reduce and imports will increase.
5. The proportion of the working population will increase, slowing down the pace of development.