Jasz
VIP Contributor
The term "demographic dividend" describes a time frame, often 20 to 30 years, during which fertility rates decline as a result of large drops in child and infant death rates. This decline is frequently accompanied by an increase in the proportion of people who are in the working age group due to an increase in the average life expectancy. This lowers spending on dependents while boosting the economy.
The impact of Demographic dividend on the Economy
The most obvious impact of demographic dividend is on economic growth, which can be measured by increases in productivity and an increase in labour force participation. Increased productivity can be attributed to factors such as higher investment rates and higher investment return rates resulting from lower interest rates and lower inflation rates.
During this period, economic growth rates would be high because there would be a large proportion of young people entering the workforce. In addition, there would be an increase in population growth rate due to higher birthrates. This increase in population caused by more births will drive up demand for construction materials such as cement and steel pipes along with cementitious products like concrete pipes and bricks which will lead to higher inflation.
The impact of Demographic dividend on the Economy
The most obvious impact of demographic dividend is on economic growth, which can be measured by increases in productivity and an increase in labour force participation. Increased productivity can be attributed to factors such as higher investment rates and higher investment return rates resulting from lower interest rates and lower inflation rates.
During this period, economic growth rates would be high because there would be a large proportion of young people entering the workforce. In addition, there would be an increase in population growth rate due to higher birthrates. This increase in population caused by more births will drive up demand for construction materials such as cement and steel pipes along with cementitious products like concrete pipes and bricks which will lead to higher inflation.
