In recent years, the birth rate in industrialized countries has reached an all-time low, threatening the sustainability of public finances. The average number of children per woman has decreased significantly, from 3.3 children in 1960 to 1.5 in 2022. This decline in birth rates is expected to have significant impacts on economic growth and prosperity, as well as public finances.
The required birth rate for stability is 2.2 children per woman, a number that most OECD countries have already fallen below. This trend, combined with an aging population, poses challenges for funding public services and infrastructure.
Countries like France and Hungary have implemented policies to support families and increase birth rates, with varying degrees of success. However, many countries, particularly in southern Europe and East Asia, are facing alarmingly low birth rates.
This trend, known as the “second demographic transition,” is characterized by changing societal structures and lifestyle choices that are leading to declining birth rates. The implications of declining birth rates are vast, affecting everything from school closures to economic growth.
Governments are being encouraged to address this issue by promoting gender equality, supporting families, and creating policies that make it easier for people to have children. As the population continues to age and birth rates decline, it is essential for countries to address these challenges to ensure a sustainable future.
In conclusion, declining birth rates pose a significant threat not only to public finances but also to economic growth and prosperity. Governments need to take action now by promoting gender equality and supporting families if they want their populations sustained without immigration in the future.
