China's population shrinks for first time in over 60 years

China's population shrank last year for the first time in more than six decades, official data showed Tuesday, as the world's most populous country faces a looming demographic crisis. The nation of 1.4 billion has seen birth rates plunge to record lows as its workforce ages, in a rapid decline that analysts warn could stymie economic growth and pile pressure on strained public coffers. The mainland Chinese population stood at around 1,411,750,000 at the end of 2022, the National Bureau of Statistics (NBS) reported, a decrease of 850,000 from the end of the previous year. The number of births was 9.56 million, the NBS said, while the number of deaths stood at 10.41 million. The last time China's population declined was in the early 1960s, as the country battled the worst famine in its modern history, a result of the disastrous Mao Zedong agricultural policy known as the Great Leap Forward. China ended its strict one-child policy -- imposed in the 1980s owing to fears of overpopulation -- in 2016 and began allowing couples to have three children in 2021.

But that has failed to reverse the demographic decline for a country that has long relied on its vast workforce as a driver of economic growth. "The population will likely trend down from here in coming years," Zhiwei Zhang of Pinpoint Asset Management said. "China cannot rely on the demographic dividend as a structural driver for economic growth," he added. "Economic growth will have to depend more on productivity growth, which is driven by government policies." ( Source AFP)