Key Takeaways
- Beijing expected to have one-third of its population aged 60 and above by 2035.
- Chinese government faces a potential cost of 180 billion yuan to boost births.
- Population ageing complicates government plans to boost domestic consumption.
Beijing, the capital of China, is set to become a super-aged city by 2035, with around one-third of its population expected to be 60 years or older, according to the official Beijing Daily. This demographic shift is part of a broader trend of population ageing in China, which has been shrinking since 2022.
The city currently has 5.29 million permanent residents aged 60 and above, accounting for almost one-quarter of its population. As the population ages, the government is stepping up support for elderly residents, including raising the basic pension.
The demographic changes are significant for China’s economic strategy. With a shrinking population and a rapidly ageing workforce, the government faces challenges in boosting domestic consumption and managing pension budgets. Demographers and economists argue that fewer children today could mean fewer households and slower consumption growth in the future.
To address these issues, the Chinese government has estimated a potential cost of 180 billion yuan ($26.92 billion) to boost births this year. However, the effectiveness of such measures remains to be seen in the face of a declining birth rate and an increasingly elderly population.
The ageing population is expected to leave the workforce at a time when pension budgets are already stretched, adding further pressure on the government to find sustainable solutions. The demographic shift is also complicating efforts to rein in debt and boost domestic consumption, as a smaller working-age population means less economic activity and lower tax revenues.
Beijing’s population ageing is part of a larger trend in China, where the country’s population has been shrinking since 2022. This demographic change is expected to have far-reaching implications for the economy and society, affecting everything from pension systems to housing markets and healthcare provision.
As the government continues to grapple with these challenges, policymakers are increasingly focusing on population planning as a key component of the country’s economic strategy. The coming years will be crucial in determining how effectively China can navigate the demographic transition and maintain its economic growth.
