China's aging population complicates economic growth and budget plans
In China's capital Beijing, one in every three people is expected to be 60 years old or older by 2035, while the rapid aging process strains the country's economic strategies and budgets.
According to information reported by Reuters from the Beijing Daily newspaper, one in every three people in China's capital Beijing will be 60 years of age or older by 2035. As of the end of last year, there were 5.29 million permanent residents aged 60 and above in Beijing, accounting for nearly a quarter of the population.
While Chinese authorities make population planning an important part of the country's economic strategy, government estimates by Reuters indicate that the government could face a potential cost of approximately 180 billion yuan, or $26.92 billion, this year to boost birth rates. The city government is increasing support for older residents, including raising the basic pension.
China's population has been declining and rapidly aging since 2022. This situation complicates the government's plans to boost domestic consumption and rein in debt, while leading hundreds of millions of people to leave the workforce at a time when retirement budgets are tight. Demographers and economists argue that fewer children could mean fewer households over time and slower consumption growth.