In terms of population growth, what does a high dependency ratio indicate?

A high dependency ratio indicates that there are a large number of dependents—people typically aged under 15 or over 65—compared to the working-age population, which is generally considered to be those aged between 15 and 64. When the dependency ratio is high, it means that there are fewer people who are economically active or part of the workforce supporting those who are dependent. This can strain economic resources, as a smaller proportion of the population is available to work and contribute to the economy while a larger proportion relies on them for support.

In contrast, if the ratio were low, it would suggest that a greater share of the population is in the working-age category, which could lead to greater economic productivity and less burden on social services and resources. A high dependency ratio often implies challenges such as increased healthcare and pension costs and a potential decrease in economic growth, as the working-age population may not be sufficient to support the dependents.