China Faces Demographic Challenge as Population Declines for Second Year, Workforce Shrinks, and Elderly Surge

China’s National Bureau of Statistics (NBS) reveals that the country’s population has declined by 2.08 million in 2023, marking the second consecutive year of decrease. The total population now stands at 1.409 billion, making it the second most populous country globally, with India surpassing it in 2022. Factors contributing to this decline include record-low birth rates and a wave of Covid-19 deaths. The birth rate saw a significant drop from 6.77 to 6.39 births per 1,000 people, the lowest since the establishment of the Communist regime.

The economic front shows a marginal growth of 5.2%, slightly above the government’s target, but still the “worst economic performance” in three decades. Notably, the workforce, aged between 16 and 59, decreased by 10.75 million, while the elderly population above 60 increased by 16.93 million from 2022. This demographic shift poses challenges to China’s economy, considering the aging population and reduced workforce. The data reflects the consequences of China abandoning its ‘one-child policy’ in 2015 due to a declining workforce and rapidly aging population. The implications of these demographic changes raise concerns about the country’s economic sustainability and the need for strategic measures to address the growing imbalance.