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Global Birthrates Decline, Raising Economic and Social Concerns

Falling fertility rates prompt worries about future population and economic growth
The world is experiencing a significant decline in birthrates, with the global fertility rate soon expected to drop below the level needed to maintain a stable population.

This trend has far-reaching implications for how people live, economic growth, and the geopolitical standings of major nations.

In high-income countries, fertility rates fell below replacement levels in the 1970s and have declined further during the pandemic.

Developing countries, including India and China, are also seeing reduced fertility rates.

Experts, such as Jesús Fernández-Villaverde from the University of Pennsylvania, warn of a 'demographic winter.' Government leaders are concerned about shrinking workforces, slower economic growth, and underfunded pensions.

Efforts to reverse the trend have shown limited success.

The United Nations' projections indicate a significant underestimation of current fertility rates, suggesting the global population could peak sooner and at a lower number than previously expected.

Countries like the U.S. have also seen a reversal of the brief pandemic baby boom, with fertility rates hitting record lows.

This 'second demographic transition' is characterized by a societal shift towards individualism, with less emphasis on marriage and parenthood.
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