Demographic crisis looms as China population shrinks for first time in over 60 years

China population shrinks for first time in over 60 years.

China could be facing a demographic crisis as its population declined last year for the first time in more than six decades, official data showed Tuesday. The last time its population declined was in 1961.

The plunge in birth rate to record lows with a rapidly ageing population will pose one of the biggest challenges to China's hopes of its GDP growing at a faster clip. Demand is likely to slow down due to this demographic crisis chipping away at the overall GDP.

Also read: China economy grows 3% in 2022: Official data

"By the end of 2022, the national population was 1,411.75 million," Beijing's National Bureau of Statistics said, adding it was a "decrease of 0.85 million over that at the end of 2021."

Birth rate in China dropped to 6.77 births per 1,000 people, down from a rate of 7.52 births in 2021. This is the lowest birth rate on record. The death rate also surged to 7.37 deaths per 1,000 people compared with a rate of 7.18 deaths in 2021.

The one-child policy is one of the major reasons for the decline in population along with rising education costs.

China ended its strict "one-child policy" -- imposed in the 1980s due to fears of overpopulation -- in 2016, and in 2021 began allowing couples to have three children.

But that has failed to reverse the demographic decline.

(With agency inputs)