Declining birth rate in South Korea affect the nation's economy
In 2067 the population shrink to 39.3 million
/NOVOSTIVL/ The country's economy will soon start reeling from a demographic shock as the population will start to decline faster this year, according to a report by Statistics Korea. This article appeared in The Korea Times.
This is because of two factors ― the declining birthrate and superfast aging.
The number of elderly people passing away is expected to exceed that of newborns beginning this year, the statistics agency noted. This will push down the population from 51.4 million in 2017 to 39.3 million in 2067.
As the total fertility rate, measuring how many babies a woman chooses to have, has kept falling ― from 1.05 in 2017 to 0.98 in 2018 ― the statistics agency needed to recalibrate its population forecast. Should this trend continue, the 2019 report said the rate will drop from 0.94 in 2019 to 0.86 in 2021, and the population will fall to 39.3 million in 2067.
The WHO suggests a rate of two children per woman to maintain population stability. If it falls below two, it recommends governments revise their social and economic policies to fill the void left by the falling population and productivity.