Republic of the Philippines

Sorsogon State University

Bulan Campus, Bulan, Sorsogon
Business & Management Education(BME) Dept.
Academic Year: Second Semester 2022-2023

Population

Submitted by:
Monica Bea R. Quinones
Ma. Christina M. Gloriat
Nicole B. Baguio
Andrea O. Domalin
 I. Objectives:
 To understand how population/growth affects long-term economic viability.
 Identify How population stabilization relevant to population increase
 To Discuss the benefits and costs of population growth.
 Explain how the rate of rise in per capita income and population growth are related.

II. Introduction
 Population

 A complete set of individuals, whether that group comprises a nation or a group of people
with a common characteristic, has various definitions depending on its nature. It refers to
the total number of people or organisms in a specific area or region. It can also refer to
people living in a particular country, city, or part of the world.

 Economic Growth

 Increase or improvement in the inflation-adjusted market value of the goods and services
produced by an economy over time. 
  Statisticians conventionally measure such growth as the percent rate of increase in the
real gross domestic product, or real GDP.

 World Population has reached 8 billion people on November 15, 2022 according to the
United Nations
 The current population of the Philippines is 113,369,333 as of Tuesday, February 7,
2023, based on Worldometer elaboration of the latest United Nations data

III. Topical Outline

The relationship between population growth and economic growth
Significance of population in economic growth
 Labor Force
 Consumer Base
 Innovation and Creativity
 Tax Revenue
 Aging Population
Basic Demography
 Birth Rate
 Death Rate
Population Growth and Income Growth
 How population affects the economic development of a country

IV. Discussions

 The relationship between population growth and economic growth

Population growth affects many phenomena such as the age structure of a country’s
population, international migration, economic inequality, and the size of a country’s workforce.
These factors both affect and are affected by overall economic growth. High population growth
in low-income countries could hinder their progress, while low population growth in high-
income countries is likely to cause social and economic issues.

The discrepancy between the population growth rate and the income growth rate is roughly
reflected in the growth rate of per capita income. The total income divided by the population is
what determines per capita income. Economic notions like population growth and economic
growth don't always apply to all nations equally. As an example Economic development may be
sped up by population growth and a nation with a higher population will be able to raise its
output more than a nation with a smaller population. However, having a high population does not
guarantee that a country's economy will grow. Many analysts think that economic growth in
high-income nations is anticipated to be relatively moderate in the upcoming years, in part
because population growth in these nations is anticipated to reduce significantly (Baker, Delong,
Krugman, 2005). Rapid population growth is now widely acknowledged to hinder development
efforts and exacerbate already existing development-related issue. The overall picture of the
connection between population growth, economic development, and economic growth is
therefore very obvious.

 Basic Demography
Birth rate: The ratio between births and individuals in a specified population and time.
Death Rate: The ratio of deaths to people in a population during a specific time period: the
incidence of fatalities in a population during a specific time period (like one year), which is often
stated as a number per 1000 or 100,000 people: MORTALITY RATE
It is possible to determine if a region's population is increasing or decreasing by comparing its
birth and death rates. When the birth rate exceeds the death rate, we can conclude that the
population is expanding because more individuals are being "added" to the area than are being
"taken away." According to logic, the population would be decreasing if the birth rate was lower
than the death rate and growing if they were equal (i.e., more people were being "taken away"
from the area than were added to it). With this knowledge, we might compare the birth and death
rates of any two nations and determine which one has a quicker population growth rate.

 How population affects the economic development of a country

Population growth can be a potential catalyst for economic development. Effect of
population growth can be positive or negative depending on the circumstances. A large
population has the potential to be great for economic development. In a country with abundant
resources and money - a rich country -perhaps more people is a good thing. But that isn't always
the case in countries with limited resources. Limited resources and a larger population puts
pressures on the resources that do exist.
World population continues to grow and is expected to peak around 2100 at a level of
almost 11 billion. Most of this growth will take place in low-income and lower middle-income
countries.
Developing countries typically have fragile infrastructure and low average per capita
income. Therefore, population growth will not directly lead to economic growth. In fact,
population growth will likely cause economic stagnation in developing countries.
Because of the momentum of past growth, it is unlikely that the increase of global
population over the next 30or 40 years will be substantially faster or slower than anticipated in
the population projections of the United Nations.
Rapid population increase can exacerbate the challenge of ensuring that future
development is sustainable and inclusive. Achieving the Sustainable Development Goals,
particularly those related to health, education and gender equality, can contribute to slowing
global population growth.
In countries with relatively high levels of fertility today, investments in education and
health can significantly increase the positive but temporary economic impact of a favorable age
distribution created by a sustained decline in fertility.
Population growth magnifies the harmful impact of economic processes on the
environment; yet the rise in per capita income has been more important than population growth
in driving increased production and. consumption.
Countries with the highest per capita consumption of material resources and emissions
of greenhouse gases are generally those where income per capita is high, not those where the
population is growing rapidly.
More affluent countries bear the greatest responsibility for moving rapidly to achieve net-
zero emissions of greenhouse gases and for implementing strategies to decouple human
economic activity from environmental degradation.
Wealthy countries and the international community can support low-income and lower-
middle-income countries by providing the necessary technical and financial assistance so that
their economies can grow rapidly using technologies that will minimize future greenhouse gas
emissions.
The world’s poorest countries have some of the fastest growing populations: the
population of low-income countries, located mostly in sub-Saharan Africa, is projected almost to
double in size between 2020 and 2050, accounting for most of the global increase expected by
the end of the century.

 Significance of population in economic growth

Population is one of the most important factors that can influence the economy of a
country. The following are some of the ways in which population can affect the economy:
Labor Force: Population determines the size of the labor force, which is a crucial factor in the
production process. A larger population means a larger pool of workers that can contribute to
economic output and growth.
Consumer Base: Population also represents the potential consumer base for goods and services,
which is essential for businesses to thrive. A larger population means a larger market for
products and services, leading to higher demand and potentially higher revenue.
Innovation and Creativity: A larger population can also mean a more diverse and creative
workforce that can drive innovation and entrepreneurship. With more people comes more ideas,
leading to more innovative products and services.
Tax Revenue: Population size can also affect government tax revenue. A larger population
means a larger tax base, which can provide more revenue for public goods and services such as
education, healthcare, and infrastructure.
Aging Population: However, an aging population can also have a significant impact on the
economy, as it can lead to a decline in the labor force and a decrease in consumer spending.
In summary, population size and structure can have a significant impact on the economy of
a country, affecting everything from labor force to innovation to government revenue. It is
essential for policymakers to understand the role of population dynamics in the economy to make
informed decisions about economic policies and investments.

 Population Growth and Income Growth

Population can have a significant impact on the economy of a country. The size and
growth of the population can affect the labor force, consumer demand, and the overall economic
output of a country.
A large population can be both an asset and a liability, depending on how effectively the
resources are utilized and managed. For example, the country China and Somalia, China has a
current population of 1,453,810,875 and its annual GDP was 121.02 trillion yuan ($17.94
trillion) in 2022, while Somali has a current population of 18,143,378 and its GDP was $1.443
billion. But a high population does not necessarily equate to a high economy.
A low population does not necessarily mean a low economy.
For example, Brunei and Kiribati, Brunei has a current population of 448,402 but its
annual GDP was $27 billion, while Kiribati has 124,225 and its annual GDP was 0.25 billion.
Countries with low populations may face certain economic challenges, such as a smaller
domestic market and a limited pool of labor, they may also have advantages, such as lower
overhead costs, lower demand for resources and infrastructure, and a more focused approach to
economic development.
In many cases, countries with low populations can achieve a high standard of living and a
strong economy by focusing on niche industries, developing innovative technologies, or
leveraging their natural resources.
Ultimately, the relationship between population and economy is complex and influenced
by many factors, and it is not possible to make a simple correlation between the two.

V. Conclusions and Recommendations

We conclude that Population growth may or may not be beneficial to economic
development, Depending on the state of a country's economy. A huge population could be very
beneficial for economic growth. The global population is predicted to peak at over 11 billion
people in 2100 as it continues to increase. The majority of this expansion will occur in low- and
lower-middle-income nations. Infrastructure in developing nations is frequently flimsy, and
average per capita income is low. Making future development sustainable and inclusive can be
challenging, and rapid population growth can make it even more difficult.
VI. References

Nepali, N. (n.d.). Relationship Between Population Growth & Economic Development. (PDF)
Relationship Between Population Growth & Economic Development | Nanda Nepali -
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https://www.academia.edu/4293022/Relationship_Between_Population_Growth_and_Economic
_Development

Now 8 billion and counting: Where the world’s population has grown most and why that matters.
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StudySmarter UK. (n.d.). StudySmarter UK.

https://www.studysmarter.co.uk/explanations/macroeconomics/economic-performance/
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GDP per Capita by Country 2023. (n.d.). GDP Per Capita by Country 2023.
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