China Records Lowest Birth Rate in History with a 10% Decline in Births

The number of births in China tumbled 10% last year to hit its lowest level on record, indicating the country is facing a demographic crisis. It comes despite a slew of government efforts to support parents and amid increasing alarm that the country could become demographically imbalanced.

According to a report by the National Health Commission, China had just 9.56 million births in 2022. That is the lowest figure since records began in 1949. The population of the world’s second-largest economy is expected to shrink next year for the first time in decades, causing many experts to warn of economic troubles ahead.

The declining number of newborns is blamed on high childcare and education costs, soaring unemployment and job insecurity, and gender discrimination that deters families from having more children or even having any at all. It also stems from the one-child policy implemented for decades until it ended in 2016.

The government has been offering various incentives to boost the birth rate. Couples that follow the rules are given a monthly stipend, extra pension benefits in their older years, and preferential hospital treatment. They can also enjoy free homes, a tonne of free water a month, and extra land allowances. They are also given priority for government jobs and better school entrance exams.

But these efforts are having little effect. China’s birth rate has declined for the past five years and is forecast to fall even further this year. Experts believe that if the trend continues, China will be caught in a “fertility trap” where an aging population and soaring social care costs will slow economic growth.

China’s leaders are worried about the country becoming old before it gets rich. Still, there’s another problem that needs to be more attention: a declining population means a smaller pool of workers. That would likely push wages and make it harder for the government to control inflation.

Subscribe to Mint on Telegram for the latest market insights!

Mint is the leading news source on the global economy, covering business, technology, policy, and culture. Our journalists are based in London, New York, Hong Kong, and Singapore, and we provide analysis and commentary from across the globe. We take pride in our fact-based approach and strive to be objective. We are committed to impartiality and editorial integrity, so any comments containing abusive and obscene language will be removed and the user banned. Comments that are irrelevant to the article or discussion will also be deleted. We encourage you to share your views, but please be respectful of other readers.

We want to hear from you! Please send us your stories, videos, and photos. You could be featured on Mint!

Please note that Mint is a financial publication not intended to provide legal or tax advice. This content is for general information only and should not be considered a substitute for professional advice.

Most Popular

More from Walops

RECOMMENDED FOR YOU

UK to Enforce Disposable Vape Ban in 2025 Amid Efforts to Curb Teen Vaping

From next summer, it will be illegal to sell disposable vapes in England as the government seeks to tackle environmental harm and rising usage levels among children. The Department for Environment, Food and Rural Affairs (Defra) said it had laid legislation to ban the sale of the...

A Brazilian Legal Battle: Musk’s $3 Million Fine

Elon Musk, the tech mogul behind Tesla, SpaceX, and now X (formerly Twitter), has been embroiled in a legal dispute in Brazil. A Brazilian judge has ordered the seizure of $3 million from Musk's assets to cover fines imposed on X for allegedly failing to comply with...

Starlink Takes Flight: High-Speed Internet Now on Over 1,000 Aircraft

In a significant milestone for aviation and connectivity, SpaceX CEO Elon Musk announced that Starlink, the company's satellite internet service, is now operational on over 1,000 aircraft. This achievement marks a substantial leap forward in providing passengers with seamless, high-speed internet access during their flights.Starlink has rapidly...

Finding Your Next Binge: Fire TV Gets AI-Powered Search for Personalized Recommendations

Feeling lost in the vast ocean of streaming content? Amazon Fire TV is introducing a new AI-powered search feature, a convenient solution to your dilemma. This innovative upgrade, powered by Amazon's large language model (LLM), is designed to ease the burden of choice by providing personalized content...

Israel to Unveil Plan for Replacing Hamas Governance in Northern Gaza

Israel will "soon" implement a plan to replace Hamas' governance in northern Gaza, according to Israeli National Security Advisor Tzachi Hanegbi. Speaking at Reichman University's annual Herzliya Conference, Hanegbi stated that the collapse of Hamas' military capabilities will create opportunities "for countries that desire an alternative government...

GameStop Stock Surges on Roaring Kitty’s Return

GameStop Corp. (GME) witnessed a significant surge in pre-market trading on Monday, June 3rd, 2024, following an unexpected Reddit post from Keith Gill, popularly known as 'Roaring Kitty.' Gill, a key figure during the meme stock frenzy of 2021, sparked the current surge by disclosing a staggering...

Safety vs Innovation: OpenAI Shaken by Executive Resignation

OpenAI, a leading research institute focused on artificial intelligence (AI), has been rocked by the departure of a key executive, Jan Leike. Leike, who led the company's "Superalignment" team, resigned publicly, citing concerns that the pursuit of flashy products overshadowed safety priorities.Leike's team focused on ensuring that...

LATAM Flight Makes Rough Landing in Auckland, 50 Passengers Injured

On Monday, a LATAM flight from Sydney to Auckland encountered severe turbulence, leading to the hospitalization of thirteen passengers. The airline, LATAM Airlines, stated that flight LA800 experienced a "technical event" causing significant movement during the journey. Despite not disclosing specific details about the incident, LATAM Airlines...

Escalation in Black Sea? Ukraine Says It Destroyed Russian Patrol Boat

Ukraine claimed Tuesday that its forces had destroyed a Russian military patrol boat on the Black Sea near the Crimean peninsula, annexed by Russia 10 years ago. The strategic waterway has become an increasingly important battleground of Russia's two-year invasion as Ukrainian forces claim a string of...

Guangzhou Bridge Disaster: Barge Crash Plunges Vehicles into Water, Two Confirmed Dead

On Thursday, Chinese state media reported a tragic incident in the Pearl River Delta near Guangzhou city, where two individuals lost their lives, and three are currently unaccounted for. The unfortunate event unfolded when a barge collided with a bridge over the Hongqili Waterway, causing a section...

Crypto Crackdown: Genesis Pays $8 Million and Loses License After AML Failures

Following an investigation that revealed substantial deficiencies in its anti-money laundering and cybersecurity programs, Genesis Global Trading, a subsidiary of Digital Currency Group, has agreed to pay an $8 million penalty and voluntarily surrender its license from the regulator, according to the New York Department of Financial...

Amid Epstein Revelations, New Claim: Brin and Ex-Wife Vacationed on Controversial Island

A new set of court documents unsealed on Monday have revealed that Google co-founder Sergey Brin and his ex-wife Anne Wojcicki, the CEO of genetic testing firm 23andMe, vacationed on Jeffrey Epstein's 'pedophile island'.' The new revelations stem from a 2016 email exchange between Sarah Ransome, one...