Problems of Under Population.

  • Resources under exploitation:- It reduces the exploitation of economic potentials since most resources will lie idle.
  • Less specialization:- Because of the tendency to engage in subsistence production in under populated areas ,there is less specialization.
  • Low aggregate demand:- The demand for goods and services will be low thereby reducing the size of the market for most goods or items.
  • Low investments:- The associated small market does not stimulate investments in the industrial sector of the economy.
  • High transport costs:-Under population characterized by thin population distribution involves high transport costs, which may hinder internal trade between areas and regions.
  • Under developed infrastructure:- Under population discourages investment on social and economic infrastructure like roads, schools, hospitals, etc this leads to under development of the economy.
  • Slow economic progress:- It slows down and hinders economic development due to lack of pressure on resources and also because of less competition.