Japan Faces Historic Low Birthrate and Economic Challenges

Japan's birth rate has reached a new historic low, with only 720,988 babies born in 2024, marking a 5% drop from the previous year and continuing a nine-year decline. This demographic crisis is compounded by a record high of 1.62 million deaths, resulting in a shrinking population that is heavily skewed towards the elderly. The declining birth rate poses serious economic and social challenges, including a shrinking workforce and increased pressure on social security systems as fewer workers support a growing elderly population. Despite government efforts, such as expanded childcare facilities and financial support for families, results have been disappointing. Experts attribute the decline partly to fewer marriages, exacerbated by the COVID-19 pandemic. Japan's government faces mounting debt and a projected labor shortfall of 11 million by 2040, raising concerns about the country's future economic stability.