torsdag 7. august 2025

China Faces Economic Blow From Population Crisis

China's potential output growth could fall to half its 2020s level by mid-century, with a shrinking labor force becoming a structural drag on the world's second-largest economy, warns a new report. Birthrates are falling across much of the world amid falling child mortality rates, increased life expectancy, greater economic opportunities for women and rising costs of living.

China and several of its East Asian neighbors face a sharper demographic challenge: some of the world's lowest birthrates alongside rapidly aging populations, without the mitigating effect of large-scale immigration seen in countries like the United States.This trend has driven policymakers to roll out childcare subsidies, fertility treatments, and other pro-natal measures—so far to little effect—in hopes of slowing or reversing the trend and maintaining economic stability.