China's Population Decline Accelerates, Threatening Economic Growth

With the largest demographic group set to leave the workforce and the pension system predicted to run out of money by 2035, China's economy faces significant challenges.

China's population has declined for the second consecutive year, with a record low birth rate in 2023 and a wave of COVID-19 deaths resulting in a population decline of 2 million.
China's largest demographic group, about 300 million people currently aged 50 to 60, are set to leave the workforce at a time when pension budgets are already stretched.
The state-run Chinese Academy of Sciences sees the pension system running out of money by 2035, with about a third of the country's provincial-level jurisdictions running pension budget deficits.
China's second-largest group, about 230 million people aged 30 to 49, are in a prime period for consumption. Once this group reaches their 50s, they are expected to participate less in domestic consumption.
China's accelerated population decline will weaken China’s economy and, through it, the world’s economy. It will put downward pressure on Chinese consumer spending and upward pressure on wages and government spending.