The population of a country has a different impact on economic development. The economic development of a country depends upon the rate of savings and investments in the whole economy.
The economic development of a country doesn’t mean the growth of the only GDP and per capita income but, it also includes the reduction in unemployment, a decrease in poverty, and an equal distribution of income in the country.
How population affects growth?
Pros of a growing population country on the economy are :
Innovation
When the population grows the burden increases in the resources of the country. Due to which for better utilization of resources the pressure of innovation increases and innovations have been seen in the economy.
Economic growth
With an increase in population, there was a growth of an economy. Because a country will have more manpower to work and produce output for export and countries economic growth will happen.
Social health
Population growth is a sign of the Social health of a country, which means the mortality rate in a country over a time period. This means the country has advanced in medicines and science. In a healthy
society, there is a growing economy.
Cons of economic growth with an increase in population are:
Savings and investments
The growth of the population in a country leads to an increase in the supply of capital goods. When an economy has population growth the consumption of resources increases and saving and investments tend to decline and countries have less economic development.
With an increase in population, the unemployment of a country tends to rise and due to limited production activity. This happens when demand for employment increases and the supply of jobs are not rising due to limited means of employment.
Population growth also increases hunger and poverty in the country. Because the burden on the economy increases with population growth. Their feeding and clothing is a huge problem when the resources are limited.
Conclusion
The reaction of population growth has a different impact on the economic development of a country. The country with more population and the country with less population both will face the problem of economic development. Due to too much manpower and too little manpower and innovation.
The countries which want to grow their economy need to have some serious population policies to increase or decrease their manpower.