China’s population falls again as birthrate hits record low

China's population declined for the fourth consecutive year in 2025, dropping by 3.39 million to 1.405 billion, as the birth rate hit a record low of 5.63 per 1,000 people. Only 7.92 million births were recorded, a 17% decrease from 2024, while deaths rose to 11.31 million. This demographic shift is driven by factors including the long-term effects of the one-child policy, increasing urbanization, and declining marriage rates, which fell sharply in 2024. The aging population, with over-60s accounting for approximately 23% of the total, poses challenges to China's economic growth and pension systems. In response, the government is raising retirement ages and promoting pro-marriage and pro-child policies, and has relaxed marriage registration rules.

Home prices in mainland China continued their decline in December, falling 0.4% month-on-month across 70 cities, matching November's drop and marking one of the steepest declines in over a year. Year-on-year, prices slipped 3%, accelerating from November's 2.8% decrease, with only six cities showing monthly gains. Despite over 500 supportive measures introduced by local governments throughout the year, including eased buying restrictions in major cities, the housing sector continues to struggle. The ongoing decline is attributed to broader economic factors like employment and consumption impacting household affordability and willingness to pay. Policymakers have pledged to stabilize the sector, but the real estate downturn, which began in late 2020, persists.