POSITIVE ECONOMIC IMPLICATIONS OF A HIGH POPULATION GROWTH RATE

  • High market potential. This is due to increase in effective demand by the growing population.
  •  High tax potential. This is due to increased investment, labourforce and consumer demand that provide more tax revenue to the government.




  • High potential for labourforce. This is because of the increase in labour supply associated with the growing population.
  • High potential for increased resource utilization. This is due to the high level of investment required to meet the increasing consumer demand hence increased use of idle resources.
  • It is an incentive or potential for massive future investment. This is due to the increased consumer demand.
  • Government is awakened to the responsibilities of providing the necessary infrastructure. This leads to increase in the level of output.
  • The young population is usually innovative and creative. This is due to increase in the level of competition that results into more discoveries.
  • It reduces per capita social overhead costs. This is because the infrastructure in form of schools, hospitals and roads is maximumly used.




  • Initiates efforts to work harder to sustain the predominantly young population. This is because the working population strives to meet the demands of the dependants.
  • High mobility of labour due to increased population pressure

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