China recently recorded its lowest birthrate ever, highlighting a worsening demographic challenge as the government grapples with a declining and aging populace.

The birthrate sank to 5.6 per 1,000 individuals in 2025, down from 6.4 in 2023. This marks the lowest point since records began in the 1950s, as reported by Wind Information.

In 2025, approximately 7.9 million newborns were welcomed into the world, a significant drop from the 9.5 million births the previous year. This decline persists despite Beijing’s initiatives to promote larger families by increasing subsidies and extending parental leave, according to statistics from the national bureau released on Monday.

Despite the relaxation of the stringent one-child policy nearly a decade ago, the birthrate has continued to decline, with a notable exception in 2024. That year saw a rise to 6.77 per 1,000 individuals, largely attributed to the Year of the Dragon, a period traditionally seen as favorable for childbirth.

“The pace of the decline is striking, particularly in the absence of major shocks,” said Yue Su, principal economist at Economist Intelligence Unit.

She added that the boost from fertility stimulus measures has faded, while young people are delaying marriage and child-bearing plans due to growing economic pressures and intensifying competition in workplaces.

Policymakers have rolled out various incentives, including cash rewards and tax breaks for households with children under age 3. Beijing has also extended the maternity leave to 158 days, from 98 days in 2024.

China has faced a looming population crisis as its elderly population grew. The share of the population aged 60 and above rose to 23% in 2025, up from 22% in 2024.

The population fell for a fourth year, declining by 3.4 million to 1.405 billion last year, according to the statistics bureau.

Economists warned that a shrinking workforce and an ageing population pose major economic risks. Fewer babies mean a shrinking workforce in the future to support a rapidly growing cohort of retirees, piling pressure on the already-stretched pension system. It could also force higher social security contributions, squeezing disposable income for younger workers.

“A shrinking population implies a smaller consumer base in the future, increasing the risk of wider supply-demand imbalances,” Su noted, calling for a more forceful policy response on fertility.

World Bank data showed that the fertility rate, defined as births per woman, fell to 1 in China in 2023, the most recent year available, below the global average level of 2.2.