Japan's Population Decline at an Alarming Rate

Japan's native population is declining at an alarming rate, with almost 100 people per hour despite government efforts to boost fertility. The 12 months leading to October 1, 2023, witnessed a decline of 837,000 Japanese nationals, contributing to an overall population decrease of 595,000. Additionally, the number of babies born in 2023 hit a record low of 758,631, down 5.1% from the previous year, exacerbating Japan's demographic crisis. Prime Minister Fumio Kishida has emphasized the seriousness of the situation and implemented measures to encourage childbirth, but the fertility decline persists, with a projected decrease in average household size below 2.0 by 2033.

Key Takeaways

• Japan's native population is declining at a rate of almost 100 people per hour, despite government efforts to boost fertility.
• The number of foreign nationals living in Japan reached a record high of 3.2 million by the end of June 2023, driven by skilled workers and technical internships.
• Japan's population pyramid is imbalanced, with under-15s at a record low of 11.4% and over-65s at a record high of 29.1%.
• Prime Minister Fumio Kishida emphasized the severity of the demographic crisis and implemented measures to encourage childbirth, but fertility rates have yet to improve.
• Forecasts highlight a bleak outlook for Japanese households, with a projected decrease in the average household size below 2.0 by 2033.

News Content

Japan's population decline is accelerating, with nearly 100 people per hour leaving despite the government's efforts to boost fertility. There has been a record low of 758,631 babies born in 2023, down 5.1% from the previous year, contributing to the country's 13 consecutive years of population decline. The population pyramid is significantly imbalanced, with under-15s at a record low of 11.4% and over-65s at a record high of 29.1%. Additionally, Japan is experiencing the largest annual population decline since 1950, with a projected decrease in the average household size below 2.0 by 2033.

Analysis

Japan’s population decline, reaching a new low of 758,631 births, reflects the challenge of boosting fertility. The imbalanced population pyramid compounds the issue, with implications for the workforce and economy. Short-term, there may be strain on healthcare and pension systems, while long-term, the shrinking workforce could impact productivity and economic growth. This trend will likely impact industries that depend on local consumer spending, as well as the housing and healthcare sectors. The financial market, including gold and Asian equities, respond to these demographic shifts.

Did You Know?

• Japan's population decline: Japan is experiencing a significant decrease in its population, with a record low number of babies born and an imbalanced population pyramid, leading to concerns about the country's future demographic trends and societal impact. The declining birth rates and aging population pose challenges for the economy and social welfare systems.