China's Population Continues to Decline with Record Low Birth Rate

China's population dropped for the second consecutive year in 2023, with a record low birth rate and a surge in COVID-19 deaths contributing to the decline. The total number of people in China decreased by 0.15% to 1.409 billion, with total deaths rising and new births falling. This trend is expected to have long-term effects on the economy's growth potential, as concerns grow over the diminishing workforce and consumer base, rising elderly care costs, and strain on local governments. The country's population aged 60 and over is increasing, exacerbating concerns about the sustainability of the pension system. Factors such as high childcare costs, job market uncertainty, and traditional gender expectations are discouraging couples from having children, despite government incentives.