Login with Facebook

Demographic trends and how they affect Economic Growth

The Global Monitoring report has always looked at major demographic shifts that have been shaping economic growth and development. For years, shifts in the world's demographics have always been a major aspect of general economic growth. The population problem is not a new one for many people, and definitely not one that can be taken lightly either. We live in a world where human needs are unlimited, while the resources needed to fulfill them are limited. According to different economic theories, including Kantian and Deontology, a human being aims to live a happy life. And this is why people are described as rational decision-makers.

Anything that seems to make an individual happier is chosen over anything that makes them less happy. This is the same issue with economic growth and development. The relationship between households and markets creates a perfect market environment. As such, the population plays a vital role in the general economic development. Global economic growth seems to have slowed significantly over the past few years. And at the same time, reports indicate that the global working-age participated was highest in 2012, which is also declining, perhaps due to the aging populations.

Even though population trends vary among countries and regions, it's always common to find certain factors that create a perfect environment for economic growth, and this is demographics. An increase in the working-age population is quite eminent, as it will affect the global poverty rate significantly. Many countries are affected by conflict and fragility, and they will want to create more jobs as they invest in human capital. Many factors play a role in determining and collecting demographic data, among them age, mortality rate, and birth rate. Investment in human capital is becoming a critical aspect of modern economies as they rush to take advantage of the younger population. Contrastingly, the main engines behind the global economic growth are aging fast, and many places are being faced by population shrinking. Some countries are being faced with a huge population growth crisis that they don't have proper economic growth. The countries are expected to cement economic growth by increasing productivity, mainly because of these demographic trends.

Economic studies have been using demographics are one of the main pillars of growing an economy. Demographics can be defined as simple as the measurement of people using factors like sex, unemployment rate, age, and many other factors. Demographic change is imminent, and it affects the underlying growth rate within an economy. It also extends into influencing structural productivity, living standards, savings rates, consumption, and investment. It can also impact the long-run rate of unemployment and the equilibrium interest rate. Housing market trends and the demand for financial assets are also touched by these changes, which impact the general economies. As if that is not enough, demographic trends in different countries can change the current account rates exchange rates. In order to understand any economy and see its proper growth, demographics a pivotal aspect that cannot be overlooked.

Trends in Demographics

The high mortality rate was a big issue until the 18th century. This is because the rate of mortality was the highest. However, human investment and technological advancement due to increase knowledge has changed everything. There is much advancement in medicine, public health, nutrition, and other areas that have contributed to reducing the mortality rate. But then, as countries develop more, fertility rates seem to decline as well. Life demands have forced many people in developed countries to resort to smaller families. It is easier for them to educate these fewer children, and it's easier to get quality education compared to having a larger family. Also, people live with the main aim of leading a happy life, so they have to decide based on what makes them happier. The rising opportunity cost of having children and shrinking natural resources is one of the main reasons behind lower living standards. As if that is not enough, there has been a large rise in population migration from rural to urban areas, reducing the need for large families to run farms. Changes in social norms linked to the availability of birth control have been on the rise. It was not until the Second World War II that baby boomers began getting their own children, at a time when the birth rate of generally on a downward trend. The USA's modern fertility rate is placed at 1.88 per woman, which is lower than the U.N. recommendation of 2.1 needed to keep a balance in the population. It's amazing how low this rate is compared to the fertility rate in 1900, which was over 3.

Even as these demographic changes come up, the general life expectancy in many developed economies like the USA has significantly increased, even amidst population aging. Today, many people can live up to 80 years, which is 30 years more than life expectancy in 1900. In the middle, it is 38 years old, which is close to ten years older than what was in 1970. A report by the United Nations indicates that the median age will be 42 years by 2050, following this trend. In addition, the number of older individuals above 65 years per 100 of the working-age will be more than twice what it was in the 70s. The continued aging of the population and the relatively stable fertility rates show that the global population will be continuing on a downward trend. The growth is estimated at two percent per year, as was the case between 2010 and 2015. The U.S. population is expected to steadily as international migration has increased over the years. However, it will slow from 0.8% to 0.5% by 2050.

Advanced economies are also following the same demographic transition, more than what the U.S. is currently witnessing. The process of population aging is also accelerating with time, as reported by Bloom and Canning (Bloom and Canning 2004).  In Japan, for instance, there has been a constant shrinking trend in the population over a period of the past half a century. It has the highest rate of older to working across the globe, and the medium age is set at 47 years old. Other regions like Europe are also characterized by a low fertility rate, which is below the replacement rate. China's rate of work-age population has gone down over the years since the 80s, partly due to the policy that parents should only have one child. As such, China population is aging rapidly, with the median now at 37 years.

As the population rate decreases in the developed economies, low and middle-income countries are at an earlier phase of this transition. Young and faster-growing population and a rise in labor force rates have been witnessed across the regions. One good example is India, where the median age is at 27 years. According to the U.N. reports, India's population will soon be more than China's, which is currently among the most populated countries. African countries have the highest fertility rates. Many of them are still witnessing a steady growth in their population, mostly because of low-level economic development and an abundance of resources.

Global demographic trends have been shaping the world and will continue doing so for many more years. They are shaping the future of many economies, which is why it's important to study them. Everything that happens in the world population largely affects how the economy is expected to grow. And there are many policies applied in making these changes worth considering in an economy. Every aspect of global development is affected, and hence, there is every need to look at the subject of demographic trends under the problem of population. To understand this, we will be looking at three trends that are most likely to shape the world.

Global migration

As stated above, a lot of the USA population growth is due to international migrations. And the rapid increase in the rate of global migration is generally one of the biggest results of demographic changes. Millions of people are not living where they were born because they found a chance to go and live in another country. Today, the number has risen three times more than what it was in 1960. The migrant population is ranked at number five in the global population. It became a normal thing for people to live far from the countries of birth. It is just as we see with rural to urban migration where people move to cities in search of better opportunities. For instance, in the USA, a large part of the population comprises immigrants, which is why there are so many mixed races here.

The European refugee crisis has received a lot of attention but is not the largest part of the world's migration problem. People relocate for different reasons. Some do so because of violence as they seek shelter in places that seem safer. However, the biggest driver for migration is an opportunity. America, for instance, is seen by many as the land of opportunities, which is why many of them want to go there. Many experts say that migrants are not necessarily fleeing a situation in particular. They can move in search of something better and set their homes in the new land. People shift from low- and mid-income nations to higher-income nations. The rate of migration has been on the high increase over the past few years, although it's not as much as it was several years ago. Thanks to global development goals initiated by global organizations like the U.N., some of the mid-level economies are really stepping up, even as the lower-end nations also grow.

The changing Middle Class

Social class, which mostly leads to social discrimination, has always been one of the issues that fuel economic growth. The middle class is between the lower and high-class societies. On a global scale, a middle class is an economy that is still developing. It was only in the Western world that these classes existed, but now it has shifted to the global arena where more than three billion people are in the mid-class category. Two billion of these are in developing economies like Indonesia, the Philippines, and Thailand. The global middle class is today found mostly in the most dynamic economy globally. This transition is being fueled by better education and technological advancement, which is an important part of the growing society.

A geographical shift follows the changes. Most people in the Middle class have moved to the cities due to higher income in these areas. As such, urbanization has become a major cause of economic growth. A majority of people in developed and developing countries are living in cities more than those in rural areas. This has left fewer people to take care of the farms. Most countries are witnessing a decline in the fertility rate as a result of these changes. Iran is said to have witnessed the sharpest decline. The family continues to be large in Africa, even though more women are entering the workforce, and there is a real middle class.

World faith

Africa is considered to have the highest share of the world population, and it will continue holding this position. Reports from experts indicate that 40 percent of the world population could African by the year 2100. Space has become scarcer across the world as more Africans are leaving their continent in search of better opportunities. And they do this; they will travel with their churches and religious practices, which will affect the whole world by spreading the faith. Countries with large families are more devout to Christianity than those without. It is estimated that Christianity will be a religion of African, carried to the diaspora.

Conclusion

Globalization is a good thing as it brings about diversity. And as the world accepts such changes, the population's problem will remain at the center of economic studies as it influences growth. There is no doubt that the global economy is changingDemographic trends, and it can be seen through the trends in demographics. 

Author: James Hamilton


Comments

Need a custom
essay?

We will write it for you.
Order now

Free Essay Examples

Free essays:

All you need to know about Neuroendocrinology
All you need to know about Big data management
All you need to know about digital special effects
All you need to know Technical Writing?
Basics the Game Theory in Cryptoeconomics
Business innovation ideas for making money
Biosensors for cancer diagnosis
Business Analysis: Pricing strategies and Demand Curve
Cognitive Computing- How does Cognitive Computing work?
Consciousness: characteristics and peculiarities
Conservation Economics
Cybersecurity in business: challenges, risks, and practices
Demographic trends and how they affect Economic Growth
Dance as an art form and entertainment
Discrimination Economics
Determinants of Wages
Everything you need to know about short-term memory
Economic and Policy Impacts of Demographics
Ethics: an essay on the understanding of evil
Emotions: what are they? Theories explained
Factors of Demographic Data Collection
Factors Affecting Purchasing Behavior
Financial Statement Analysis
Factors Influencing Interest and Exchange Rates
Government's Intervention in The Labor Market
Guide on the Pathways of the nervous system
Game theory in microeconomics
Globalization: definition, causes, social impact and risks
How Relativism Promotes Pluralism and Tolerance
How to use the audience’s feedback to write a news report
History of silent cinema
How news report can be strengthened through multimedia
Introduction to Population Problems
Imperfect Information and Asymmetric Information
Imperfect Information in Insurance
Introduction to Labor Markets
Journalism: What is News?
Journalism: Broadcast media and Television Presenters
Journalism: Sources of News
Journalism and Law
Key Determinants of National Income
Key Factors That Affect Pricing Decisions
Kinetic models in biology and Related fields
Know about the different forms of traditional African dances
Latest technology trends
Latest dance trends
Magnetoencephalography (MEG)
Microeconomic Analysis to the Demand for Labor
Neuromuscular disorders
National Economies, Fluctuation, and Responses to Fluctuations
Neurotransmitters: what they are and different types
Nanomedicines to target tumors
Objections to utilitarianism
Organizational motivation and its effects
Overcoming Hiring Challenges for Nonprofit Organization
Population Demographics
Russian School of Mathematics
Research and Development
Risk Sharing in Insurance and Asset Markets
Risk and the value of information
Structure of the nervous system
Structure of a Corporation
Schizoaffective disorder: how to live better with it
Segregation in the US.
The climate change denial
The techniques of basic cinematography
The Endosymbiotic Theory
The Role of Internal Audit in Corporate Risk Management
Unions
Unemployment
Utilitarianism Vs. Kantianism
Understanding Auctions and Auction Theory: Part 2
Various theoretical perspectives of sociology
Virtual reality, what it is and how it works
What is the deep neural network?
What happens in the brain when learning?
4 Facts about Origin of Mathematics!
5 techniques to create an animation
10 emerging technologies according to World Economic Forum
10 strategies to maximize corporate profits
3d Model Of Building
6 Medical Technologies that revolutionized the healthcare in 2020
All you need to know about the ACA Code of ethics
Architecture and Democracy: An Introduction
Architecture and Democracy: Democratic Values
Architecture and Democracy: Democratic Procedures
All You Need to Know About a Synthesis Essay
An essential guide to understanding Film Theory
Application of Artificial Intelligence in Cyber Security
Applications of electrical engineering
Augmented reality: what it is, how it works, examples
Advantages And Disadvantages Of Social Networking
All you need to know about Cryptography
Applications of astrophysical science
All you need to know about architecture engineering
Applications of geological engineering
Artificial intelligence and medicine: an increasingly close relationship
An insight into Computational Biology
ACA code of conduct
A Rose for Emily
Applications of Mathematics in daily life
Architecture mistakes to avoid
All you need to know about Toxicology
All you need to know about Holistic Medicine
All you need to know about linguistics
An introduction to Linguistics and its subfields
All you need to know about Anxiety disorder
All you need to know about Drones
A Brief Insight into Political Science
Assumptions related to feminism
All you need to know about Byzantine emperors
All you need to know about labour economics
An insight into xenobots -the first-ever robots
An ultimate guide about Biomaterials
A Comprehensive Introduction to the Mona Lisa
Analysis methods of Transport through biological membranes
An ultimate guide about biochemical reactions
Analysis of brain signals
Artificial Gene Synthesis
Application to synthetic biology of CAD methods
All you need to know about metabolic pathways
Applications of BIOMEMS
All you need to know about the epidemiology
Asian vs. western leadership styles
All you need to know about Smart prosthesis
Analysis of Economy: Output of Goods and Services (GNP), and GDP on Economic success
A Guide to Pricing Strategies
An Overview Of Economic Studies
Analysis of Fiscal and Monetary Policies
Analysis of Business Cycles
Analysis of Consumption and Investment
A Look into Regression Analysis
Analysis of Household's Consumption and Savings Behavior
All you need to know about Capital Budgeting
All you need to know about risk management
Art looted in wartime.
Appropriate use of Data in Economics
All you need to know about reaction kinetics?
A historical overview of Financial Crises
All you need to know about management discipline?
An insight into the error-correction models
All you need to know about Data visualization
All you need to know about Work-family balance
All you need to know Technical Writing?
All you need to know about digital special effects
All you need to know about Big data management
All you need to know about Neuroendocrinology
How to Write a Personal Essay
Housing Needs in America
How to Write a Description Essay
How to Create an Excellent Scholarship Essay?
How to write a cause and effect essay
How to Hire the Best Essay Writing Service Provider?
How to Write a College Application Essay?
How to get the most out of your English lectures
How to write Expository Essay
How to succeed in your psychology class?
How to Write an Academic Essay in the Shortest Time?
History of Journalism
How Different Sectors are Using Artificial intelligence (AI)
How to write an informative essay
How to deliver persuasive essays?
How to Give a Convincing Presentation
How to write an essay on leadership?
Historical Art Still Around Today
Humanoid robot: what it is, how it works and price
History of Chemistry
Healthcare Advanced Computer Power: Robotics, Medical Imaging, and More
Healthcare AI: Game Changers for Medical Decision-Making and Remote Patient Monitoring
How to understand different types of English
How to Cope with Chronic Pain
How African American choreographers and dancers have influenced American dance
How mobile robot can do in logistics or in production
How To Become a Successful Entrepreneur
History of the Philosophy of Feminism
How is the climate changing?
How to Track Your Content Marketing ROI
How to Gun control In the USA?
Historical and contemporary role of labour in the modern world
How breast cancers are classified?
How the cells of our body communicate?
How the Lymphatic System Works?
How Digestive System Works
How to complete your capstone projects effectively?
How to write a research project
Healthcare technologies that help patients with better self-management
How to choose the topic of the senior capstone project
How to make your business survive at economic crisis
How can immigrants blend in the American society?
How does the economics of war affect society?
Hate speech on social media.
How to Build an Economic Model
How to start a healthcare startup?
How can financial illiteracy harm you?
How cancer is developed - Cancer biology
How to define the Enterprise Value
How to conduct economic research?
How women can manage sexual harassment
How to use quotes in your news reports?
How news report can be strengthened through multimedia
History of silent cinema
How to use the audience’s feedback to write a news report
How Relativism Promotes Pluralism and Tolerance
Introduction to Urban Studies
Importance of dance in education
InMoov: how to build an open source humanoid robot
Importance of KYC verification to making the Blockchain secure
Importance of Rhythm
Importance of dance student evaluation
I/O control methods -types and explanations
Identity theft: what to do?
Introduction to Utilitarianism
Importance of 3d Modelling in Architecture
Importance of online journalism
Image processing in medical diagnosis
Introduction to USA Politics
Introduction to Comparative Politics
International Relations as a Major in Political Science
Importance of modern trade policy
Introduction to Journalism
Introduction to Writing a TV Script
Introduction of Microfabrication techniques
Introduction to Microeconomics
Interaction of Consumer and Firm Choices in Markets
Importance of corporate sustainability
Issues in International Monetary Macroeconomics
Introduction to Statistics and Data for Economics
Introduction to Data and Probability for Economics
Introduction to the Game Theory
Introduction to Econometrics
Introduction to Economic Information
Introduction to Market Equilibrium
Introduction to Economic Models and Application
Introduction to Empirical Research
Introduction to Econometric Data
Importance of Critical Thinking, Principles, and Goals
Introduction to Identification and Causal inferences
Introduction to Econometric Application
Intermediaries and Government in Financial Crisis
Importance and seven principles of quality management
Illiteracy in the USA
Introduction to Economics of Law
Introduction to Coase Theorem
Introduction to Social Choice and Incarceration
Intellectual Property and Product Liability
Investment in Human Capital
Introduction to Labor Markets
Imperfect Information in Insurance
Imperfect Information and Asymmetric Information
Introduction to Population Problems
The Looming Energy Crisis in America
Top benefits of performance-based engineering
The More Languages You Know, The More Times You Are a Man
Things to consider while writing an Argumentative Essay
Top Ways to Improve Your Academic Writing Skills
Tips to Excel in Creative Writing
The origins of films in the early 19th century
Top career options in Architecture
The Elevator Pitch
Top finance trends 2020
The basic Structure and functionality of robots
The Way to Success
The election system of the President in the United States of America
Two-party System in United States of America
Top trends in urban design
The history and theory of African American filmmaking
Top benefits of creative writing
Tinnitus Guide: Common Symptoms and Treatment Options
The language of dance
The digital image processing management
Top famous politicians of the World
Top methods of political science!
The history of the feminist movement
The blood flow in cardiovascular system - Biofluid Mechanics
The best of Leonardo Da Vinci
The Structure and Function of Macromolecules
The structure of cell: a research on the bricks of the human body!
Tissue and organ construction: Adhesion and recognition between cells
The kinetics of the transformation processes
The Modeling of Biological Systems
Tips for writing a great thesis statement
The Defense mechanisms against infections
The impact of the technological innovations in medicine
Top journalism trends to know about
The relation between mass media & politics
Theranostics: Diagnosis and Care through Nanoparticles
The practical Applications of X-rays
The applications of Ultrasound in medicine
Transfer mechanisms of genetic information in Bacteria
The regulation of cellular metabolism in the diagnosis
The Principles of MRI Contrast agents
The technical basis of optical coherence imaging
The New Media: Emerging Trends
The Structure of Interest Rates and the Yield Curve
Technological perspectives and reflections of neural engineering
Types of bioreactors and their applications
The Role of Government Policy in Improving Economic Outcomes
Types of corporate responsibility
The Role of IMF in International Monetary Macroeconomics
Tools for investment decision making
The concept of Organizational Culture and its applications
The Conduct of Monetary and Fiscal Policy
The Basics of Financial Accelerator Models
Tips for labeling medical devices- Medical Entrepreneurship
The different medical imaging techniques
The Economics of Uncertainty – Introduction
Theories of Public Policy
The Game Theory in Social Media
The political theory of Thomas Hobbes
The Use of Law on Economics and Vice Versa
The Role of Internal Audit in Corporate Risk Management
The Endosymbiotic Theory
The techniques of basic cinematography
The climate change denial
What is a Definition Essay?
What are diagnostic essays?
What is the relation between art structural engineering?
What is a Narrative Essay
What are robotics and intelligence systems?
What are the benefits of studying health sciences?
What is artificial intelligence and why it matters?
What is comparative Literature?
Why study neuroscience
What is Wi-Fi and how does it works
What is French history famous for?
What are Humanistic Studies?
What is covered in Biophysics?
What is modern journalism?
What is Virtualization? Benefits & Applications
What are modern public relations?
What is plasma physics?
What is teacher preparation?
What is rapid prototyping for 3D printing?
What is contemporary European Politics?
Why should you learn American Ballet?
What is engineering physics?
What is the purpose of African American Literature?
Ways to learn the Rhythm
What is digital art used for?
What are Enzymes and how do they work
Who is the father of political science?
Why Study Political Science - Job?
What is the Philosophy of Feminism?
What is a quantum computer?
Ways B2B Startups Streamline Their Conversion Strategies
Why do biomedical signals need processing?
What are the long term effects of climate change?
Why study labour relations
What is Holoprosencephaly?
What is antisocial disorder?
What are the important principles of evolution?
What is the cytoplasm and its function?
What is biopolymers?
What Makes a Good Leader
Women empowerment in modern generation
What is the history of political thought?
What is Gene recombination
What is synthetic biology
What is business cost analysis?
What is Inflation
What are the consequences of unemployment?
What is lithotripsy and its types?
What is transition elastography?
What is the purpose of deep brain stimulation?
What is a Brain-Computer Interface (BCI)
What is neuroethics?
What is Market and Supply and Demand
What is optogenetics?
What are the techniques to record brain activity?
What happens if the interest rate increases?
What is immunotherapy?
What is the economic role of the financial market?
What are the factors behind illegal immigration?
What is the lymphocyte activation?
What is financial market and its types?
What is the structure of financial markets?
What are the methods of measuring business performance?
What is the Credit market?
What is business ethics and code of ethics
What are the Causes of financial instability?
What is MBA with Concentrations
What is regenerative medicine?
What is Population ecology?
What is Microfinance: evolution, and practices?
What is biotechnology and its applications?
What are Workplace diversity and its benefits?
What is the difference between a leader and a manager?
What Is Branding and best branding Business strategies?
Why are microelectronics important?
What are biologic drugs.
What is the Foreign Exchange market?
What is the role of scientific research in times of crisis?
What are the risks of international trade?
What is financial management?
What is gene therapy?
What is education economics?
What is regression analysis, and why should you use it?
What Is Technology Marketing And How Should It Work?
What is Management Accounting
What are the methods of valuation of companies?
What is Immune System and Immunotherapy?
What is big data analytics?
What is the 7 layers of OSI model?
What is Neuroplasticity?
What are Sculpture art and its types?
What are the different genres of films?
What is Transcranial magnetic stimulation (TMS)?
What is TES-Transcranial electrical stimulation?
What is Relativism?
What is Vaccine skepticism, and what to do about it?
What happens in the brain when learning?
What is the deep neural network?