China’s birthrate
has dropped to 8.5 births per 1,000, the lowest level since 1978 as Beijing
struggles to deal with a looming demographic crisis. According to data released
from China’s national bureau of statistics, this is the first time that the
country’s birthrate has dropped below 10. The natural rate of population growth
— considering both births and deaths — has come down to a low of 1.45.

The massive drop
in birthrate, while ominous, did not come as a surprise for Beijing. The world’s
most populous country, China took stringent measures to counter a rise in
population since the 1980s. As the Communist government’s efforts bore fruit,
China saw a steady decline in population growth rate.

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The last 30 years
also saw China ride the growth engine like no other nation. However, the
current decline is worrying because continuing decline may throw a spanner in
the works of Beijing’s plan to sustain economic growth.

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While the national
bureau of statistics did not provide reasons for the worrying decline in
birthrate, observers say that along with the government’s strict policies, high
cost of living in China and a skewed gender ratio with not enough women in the
population have led to the current situation.

With worries about
sustaining a working population keeping Beijing on its toes, the government is
taking several steps to counter the problem. China has already given up on the
one-child policy and local authorities are taking a swathe of measures to
encourage couples to have more children.

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However, demographers
remain skeptical about how much of the efforts will work and whether its too
late for China. They say that China’s population will continue to shrink over
the next decade and the population drop will be so immense that it could
potentially derail the world’s second-largest economy.

Current estimates
show that a-third of China’s population will comprise people over the age of
60 by 2050, which will put a severe strain on state services.