Demographics—statistical data related to a population—play a key role in rates of economic growth. That's because the makeup of any population can influence the supply of labor and productivity—known as the demographic dividend.
That's because the makeup of any population can influence the supply of labor and productivity—known as the demographic dividend. Labor force participation, birth rates, the different ages of those in the workforce, and their skills and education can have an impact on a nation's economic prosperity.
Population growth, size and distribution cannot be discussed separately without the economic growth or change. Demography and economics are closely related in the fields of variables like, rate of population growth, age, sex, educational level, profession, per capita income and national income.
Demographic change can influence the underlying growth rate of the economy, structural productivity growth, living standards, savings rates, consumption, and investment; it can influence the long-run unemployment rate and equilibrium interest rate, housing market trends, and the demand for financial assets.
Demographic studies help make sense of key aspects of the economy, offering insight into trends in fertility, mortality, immigration, and labor force participation, as well as age-, gender-, and race-specific trends in health and disability.
Demographics do not determine the fate of economic growth, but they are certainly a key determinant for an economy's growth potential. An aging population coupled with a declining birth rate in the developed world points to a decline in future economic growth.,Economists use several measures of population change to study questions surrounding that issue
