Fast-shrinking South Korea breaks own record for world’s lowest fertility rate
- Just 249,000 babies were born in South Korea last year – a fertility rate of 0.79 compared to 0.81 the year before – while about 373,000 people died
- The country has the world’s fastest-shrinking population among economies with per capita GDP of at least US$30,000, according to the UN and World Bank
The number of babies expected per woman fell to 0.78 last year, according to data released by the statistics office on Wednesday. At 0.81 in 2021, it was already the lowest among more than 260 nations tracked by the World Bank.
The lack of babies carries long-term risks for the economy by reducing the size of the workforce that underpins its growth and vitality. Welfare spending for an ageing population also drains national coffers that could otherwise be utilised to promote businesses, research and other enterprises that are key to prosperity.
A shrinking workforce is a major cause of South Korea’s declining potential growth rate. The working-age population peaked at 37.3 million in 2020 and is set to fall by almost half by 2070, according to Statistics Korea.
03:18
China reports first population decline in 6 decades, with birth rate at record low in 2022
The number of newborns declined last year to 249,000 from 260,600 a year earlier, the statistics office said. That’s less than 5 per cent of the population. In contrast, about 373,000 people died last year, extending what one policymaker called a “death cross”.
South Korea has the world’s fastest-shrinking population among economies with per capita gross domestic product of at least US$30,000, according to United Nations projections and World Bank data. By 2100, the number of people is projected to fall by 53 per cent to 24 million. That’s a further deterioration from a 43 per cent decline forecast in 2019.
The government has also adopted a policy of living with an ageing population, after seeing its efforts bear little fruit. That includes enhancing living conditions for retirees, accelerating robot adoption and inviting more foreigners into the workforce.
Can China overcome its fertility challenge?
Economists suggest South Korea needs to do more to improve gender equality so that women feel less worried about losing their jobs by having children. High education and housing costs are among other factors putting pressure on fertility, data show.
The average age at which a woman has her first child rose to 33 last year while the number of second children fell by 16.8 per cent. By region, the capital Seoul had the lowest fertility rate at 0.59, while Sejong, home to government headquarters, had the highest at 1.12, according to the statistics office.
The figures are preliminary and may be revised later this year.
