Age dependency ratio (% of working-age population)



Countries By Age dependency ratio (% of working-age population)



Key points



Official Definition of Age dependency ratio (% of working-age population)

Age dependency ratio is the ratio of dependents--people younger than 15 or older than 64--to the working-age population--those ages 15-64. Data are shown as the proportion of dependents per 100 working-age population.



Importance

The Age dependency ratio (% of working-age population) is a crucial macroeconomic statistic for a country as it indicates the proportion of dependents (individuals younger than 15 or older than 64) compared to the working-age population (individuals aged 15-64).

A low Age dependency ratio suggests that there are fewer dependents to be supported by the working-age population. This can have positive implications for a country as it may indicate a larger workforce relative to dependents, potentially leading to higher productivity, increased savings, and overall economic growth. With a lower burden of dependents, the government may have more resources to allocate towards infrastructure development, education, and healthcare. Additionally, a low Age dependency ratio can support sustainable pension and social welfare systems.

Conversely, a high Age dependency ratio signifies a larger proportion of dependents relative to the working-age population. This can pose challenges for a country as it may strain social welfare systems, healthcare services, and pension funds. A higher dependency ratio can lead to a decrease in savings, increased pressure on the labor force, and potentially slower economic growth. Governments may face challenges in meeting the needs of an aging population while ensuring sustainable economic development.



Top 10 Countries by Age dependency ratio (% of working-age population)

Bottom 10 Countries by Age dependency ratio (% of working-age population)



Regions

Europe

Age dependency ratio varies among the listed countries, with Finland having the highest ratio at 61.69% and Andorra the lowest at 37.99%. High ratios like France's 62.76% and Germany's 55.56% signal a significant burden on the working-age population to support dependents. Advantages of lower ratios, seen in Iceland (49.88%) and Luxembourg (43.97%), include potentially lower strain on social welfare systems. However, a disadvantage is a potentially dwindling workforce. This statistic impacts development by indicating demographic challenges; countries like Italy (56.81%) may face economic challenges due to an aging population, while countries like Norway (53.71%) could have more robust labor forces.

Far East: East Asia, SE Asia, Australia

The age dependency ratio (% of working-age population) varies among the listed countries, with Japan having the highest ratio at 70.94% and Singapore the lowest at 33.88%. A high ratio, like in Japan, indicates a larger burden on the working-age population to support dependents, potentially straining resources and impacting economic growth. On the other hand, a low ratio, as seen in Singapore, may indicate a more sustainable demographic structure with fewer dependents. Countries like Cambodia, Laos, and Papua New Guinea have ratios above 55%, posing challenges for economic development due to a higher dependency burden.

ASEAN

The age dependency ratio (% of working-age population) for the listed countries varies significantly. Countries like Brunei and Singapore have lower ratios indicating a smaller proportion of dependents relative to the working-age population, potentially leading to higher savings rates and workforce productivity. In contrast, countries like Cambodia, Philippines, and Laos have higher ratios, which may strain resources for healthcare, education, and social services. This could hinder economic growth due to a decreased labor force participation and increased burden on the working-age population. Strategies to address this disparity could include reforms in healthcare, education, and retirement policies to ensure sustainable development.

Latin America

The age dependency ratio (% of working-age population) for the selected countries ranges from 43.11% in Brazil to 62.15% in Guatemala. This statistic indicates the proportion of dependents to the working-age population, with higher ratios suggesting a potentially heavier economic burden. Countries with higher ratios like Guatemala, Bolivia, and Venezuela may face challenges in supporting their aging population, impacting their economic productivity and development. On the other hand, countries with lower ratios such as Chile and Colombia may have a demographic advantage in terms of workforce participation and economic growth potential. Finding a balance in addressing the needs of both dependents and the working-age population will be crucial for these countries' long-term sustainability and prosperity.

Middle East

When analyzing the age dependency ratio (% of working-age population) for the listed countries, we observe significant variations. Countries such as Qatar and the United Arab Emirates have notably low ratios, indicating a smaller proportion of dependents relative to the working-age population, which could suggest potential advantages in terms of a larger workforce contributing to economic growth. On the other hand, State of Palestine and Yemen exhibit much higher ratios, highlighting potential challenges with a larger dependent population impacting economic productivity. The implications of this statistic on development vary, with lower ratios potentially indicating a demographic dividend for economic expansion and higher ratios posing challenges for social welfare systems and sustainable development.



Rivals

Anglosphere v BRICS

The age dependency ratio (% of working-age population) statistic for the selected countries is as follows: Australia (53.32), Brazil (43.11), Canada (51.26), China (44.14), India (48.78), New Zealand (53.01), Russia (49.22), South Africa (53.23), UK (57.51), and USA (53.22). The United Kingdom has the highest ratio, indicating potential strain on the workforce to support dependents, while Brazil has the lowest. Higher ratios like in the US and Australia may lead to increased healthcare and social security costs, but they may also signify a skilled workforce with higher productivity. Lower ratios like in Brazil may indicate a younger population with potential for economic growth but may lack experience and maturity in the workforce.

Russia v Ukraine

When examining the age dependency ratio for the Russian Federation and Ukraine, we see that both countries have a relatively high ratio of dependents to working-age population, with Russia at 49.22% and Ukraine at 48.19%. This indicates a significant burden on the working-age population to support dependents, potentially straining social welfare systems and economic productivity. For Russia, the advantage lies in its larger economy and natural resource wealth, which can help offset the challenges posed by a high dependency ratio. However, this ratio could hinder long-term economic growth if not addressed through policies promoting workforce participation and productivity. On the other hand, Ukraine may face greater challenges due to its smaller economy and political instability, exacerbating the impact of a high dependency ratio on its development and societal well-being.

France v United Kingdom

In France, the age dependency ratio stands at 62.76%, indicating a relatively high proportion of dependents compared to the working-age population. Conversely, the United Kingdom has a lower ratio at 57.51%, suggesting a slightly lower dependency burden. France may face challenges in terms of healthcare and pension costs due to an aging population. On the other hand, the United Kingdom might have a more sustainable demographic structure, potentially leading to lower pressure on social services. This statistic is crucial for both countries as it impacts economic productivity, healthcare systems, and pension sustainability, influencing their overall development trajectories.

Israel v Iran

In Iran, the age dependency ratio is 45.14%, indicating a relatively lower proportion of dependents compared to the working-age population. This suggests a potentially larger workforce supporting dependents, which could positively impact the economy through increased productivity. Conversely, Israel has a higher ratio of 66.79%, signaling a larger dependent population relative to the working-age individuals. While this may strain social welfare systems, it also reflects longer life expectancy and possibly a more stable demographic structure. A lower dependency ratio in Iran may provide a demographic dividend for economic growth, whereas Israel's higher ratio underscores the importance of sustainable social security policies to support its aging population.

Saudi Arabia v Iran

Iran has an age dependency ratio of 45.14%, indicating a higher proportion of dependents to the working-age population. This suggests a potential strain on resources to support the young and elderly. In contrast, Saudi Arabia has a lower ratio of 39.74%, implying a relatively lighter burden in supporting dependents. Iran may face challenges in providing healthcare, education, and social services, impacting its economic productivity. Conversely, Saudi Arabia's lower ratio could lead to a more economically active population with advantages in workforce participation and potential higher economic output, but it could also result in a lack of social support for the elderly. Overall, the age dependency ratio reflects the demographic structure and highlights the varying socio-economic challenges and potentials for both Iran and Saudi Arabia.

India v Pakistan

India has an age dependency ratio of 48.78%, indicating a lower proportion of dependents compared to Pakistan's 70.78%. This suggests that India has a larger working-age population relative to dependents than Pakistan. In terms of advantages, India may have a more robust workforce with potential for greater economic productivity. However, a higher age dependency ratio in Pakistan could strain resources for social welfare programs and healthcare. For India, a lower ratio may result in greater savings and investment opportunities. In contrast, Pakistan may face challenges in providing adequate support for its dependent population. This statistic underscores the demographic differences between the two countries, influencing their respective economic trajectories and social policies.

Turkey v Greece

In Greece, the age dependency ratio stands at 57.13%, indicating a relatively high proportion of dependents compared to the working-age population. In contrast, Turkey's ratio is slightly lower at 46.83%. Greece's higher ratio suggests a heavier burden on the working-age population to support dependents, potentially straining social welfare systems. This may hinder economic growth as resources are diverted away from investment. On the other hand, Turkey's lower ratio may signify a demographic advantage with more potential workers contributing to the economy. However, this could also strain resources as the population ages, requiring long-term planning for pension and healthcare systems.

China v Japan

In terms of the age dependency ratio (% of working-age population), the data shows that China, People's Republic of has a ratio of 44.14% while Japan has a higher ratio of 70.94%. This indicates that Japan has a higher proportion of dependents relative to its working-age population compared to China. For China, a lower ratio suggests a potentially larger working-age population capable of driving economic growth but may also indicate a future aging issue. Japan, on the other hand, may face challenges in supporting its dependent population but may benefit from experience and expertise from an older demographic. The statistic highlights the need for China to focus on sustainable development strategies to support its aging population in the future, while Japan may need to implement policies to encourage a higher birth rate or immigration to support its dependent population and maintain economic stability.



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