Once the most populous country in the world, China reported that its population shrank for a second consecutive year in 2023, underscoring the countrys deepening demographic crisis that threatens future economic growth.According to Chinas National Bureau of Statistics (NBS), the countrys population fell by around 2.08 million in 2023 after having already dropped by 850,000 in 2022 - the first decline since the Great Famine of 1961. China now has an estimated 1.409 billion people, recently falling behind India as the worlds most populous country.Record-low birth rates in ChinaThe ongoing population slide is attributed to record declines in birth rates along with pandemic deaths. Chinas 2023 birth rate sank to the lowest since the foundation of the Communist regime in China. The country recorded a drop of 6.39 births per 1,000 people, down from 6.77 in 2022.Meanwhile, Chinas GDP grew slightly above the governments 5.0% target at 5.2% in 2023 despite fresh virus outbreaks. However, the pace still marks Chinas worst economic performance in over three decades.Shrinking working-age populationReflecting the aging crisis, Chinas workforce population of those aged 16-59 shrank by nearly 11 million compared to 2022. In contrast, the 60+ population swelled by almost 17 million.In 2015, China abolished its notorious one-child policy in favor of a two-child limit. But that has failed to stave off demographic decline amid changing social norms and the high cost of urban living and education.Economic headwindsWith a decreasing workforce and aging citizenry straining public resources, experts warn Chinas current demographic shift could spell trouble for the countrys future prosperity.Leaders in Beijing ace pressure to spur population growth and productivity while several economic drags limit room for sweeping rescues. Ongoing virus curbs and housing/debt crises further cloud the outlook.
