Last year, for the first time since the 1960s, China’s population shrank, which is a historical turning point that will have an impact on both the country’s economy and the entire world, writes Reuters.
The last time the population decreased in China was in 1961, which was the last year of China’s Great Famine. UN experts believe that China’s population will decline by 109 million by 2050, leading Chinese demographers to make dire predictions that China will grow old before it grows rich. The economy will slow down, tax revenues will decrease and government debt will increase.
Chinese demographer Yi Fuxian pointed out that demographic projections are much bleaker than expected. He added that a shrinking labor force and a decline in manufacturing will further drive up already high prices and inflation in the US and Europe. On the other hand, Kang Yi, the head of China’s National Bureau of Statistics, told the press that there is no cause for concern, as the total labor supply still exceeds demand.
China’s birth rate was 6,77 births per 1,000 people last year, the lowest on record.
The number of women of reproductive age, which is 25-35 years in China, has decreased by 4 million.
China’s one-child policy is partly to blame for the demographic decline, as well as the extremely high cost of education, which forces a serious rethinking of procreation. China’s strict Covid-19 restrictions, which have been in place for almost three years, have caused additional damage to the demographic situation.
Since 2021, Chinese municipalities have been creating policies that should encourage families to decide in favor of more children. Tax relief, longer parental leave, and housing support are on offer. Chinese President Xi Jinping announced in October that the government is planning additional support for families.
Read also: World’s human population passes eight billion