Demographic debt refers to future challenges arising from population aging.

It stems from a
higher proportion of elderly individuals relative to the working-age population, leading to
increased healthcare costs, social service demands, and strains on economic productivity.
Tied to the dependency ratio, it highlights potential downsides when caring for an aging
population. With aging population, fewer individuals in the workforce, economic growth may
decline. Addressing demographic debt requires strategic planning and investments in
healthcare, social security, and elder care to ensure sustainable development amid changing
demographics.

Demographic dividend refers to the economic benefit that arises from a favorable age
structure within a population. This occurs during a demographic transition when there is a
high ratio of working-age individuals relative to dependents. The dividend is realized as the
working-age population contributes significantly to the labor force, leading to increased
productivity and economic growth. Key features include a demographic shift with declining
fertility rates, resulting in a temporary bulge in the working-age cohort. To harness the
demographic dividend, strategic investments in education, healthcare, and employment
opportunities are crucial to maximize the potential economic advantages during this
demographic window.

Demographic deposit refers to the initial phase of demographic transition characterized by a

rise in the proportion of the working-age population relative to dependents, creating a
potential economic advantage. This concept signifies a temporary period when the
workforce expands due to declining fertility rates, leading to a favorable dependency ratio.
During this phase, a society can experience increased productivity and economic growth. The
term highlights the mechanical aspects of population structure changes, emphasizing the
potential for economic benefits driven by a larger workforce. To effectively utilize this
demographic deposit, strategic planning and investments in education, healthcare, and
employment opportunities are essential for long-term economic development.