China's Population Decline Raises Economic Challenges

China's population has declined for the third consecutive year, dropping by 1.39 million to 1.408 billion at the end of 2024, despite a slight increase in births attributed to the Year of the Dragon. This demographic trend poses significant challenges for the country's economy, with an aging population and a shortage of working-age individuals. The decline is partly due to the high cost of living, which leads young people to delay marriage and childbirth, and is exacerbated by limited immigration policies. Efforts to boost birth rates, such as lifting the one-child policy and providing incentives for having more children, have seen limited success. As China's population continues to age, concerns grow over economic growth and social stability, with some forecasts predicting a further population decrease to 1.36 billion by 2035.