31 Jul 2023
Asian Century: China collapse
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
There is not much doubt that this will be the Asian Century given that half of the World’s population live in this region however China may not be as dominant as has been previously forecast.
The challenge is demographics due to the One-Child Policy implemented by China between 1980 and 2015 to curb the country’s population growth.
The supply of working-age people peaked at a billion in 2010 according to the Chinese census but the Chinese census results in 2020 revealed that the number of working-age people had fallen by 30 million.
Chinas median age is now higher than the Unite States, deaths outnumber births and the fertility rate which needs to be at 2.1 children per adult woman to maintain a steady population has fallen below 1.1.
If China has ghost cities now, imagine what will happen to property values in a country where half of its population disappears?
Click for chart.
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