Japan’s birth rate has declined for ten consecutive years, and the population crisis is worsening!

```

Japan's number of births in 2025 recorded a decline for the tenth consecutive year, further highlighting the country's increasingly severe demographic pressures and posing a stern test for the effectiveness of the new government's policies in addressing the population crisis.

According to preliminary data released by Japan's Ministry of Health, Labour and Welfare on Thursday, the number of newborns in Japan in 2025 fell year-on-year by 2.1% to around 706,000. In the same period, the number of deaths in Japan fell slightly by 0.8% to approximately 1.6 million.

To address population decline, Prime Minister Sanae Takaichi is attempting to promote a series of economic incentive measures, including tax reductions and childbirth subsidies. However, these proposals aimed at lowering childcare costs have not yet been formally implemented.

The continuously shrinking birthrate has exacerbated market concerns about Japan's long-term economic growth potential, and the government's distracted focus on population policy has led outsiders to question whether the urgency to reverse the birthrate has been downgraded on the national agenda.

Shifting Policy Focus Sparks External Doubts

According to Bloomberg, Sanae Takaichi proposed several incentives before the Liberal Democratic Party leadership election last October, including tax deductions for hiring nannies and domestic services, as well as corporate tax reductions for companies establishing internal childcare centers. In addition, as Japan's first female prime minister, she pledged to introduce national certification for childcare providers and improve their pay and working conditions. At the opening ceremony of last week's parliamentary session, Takaichi stated the government would reduce costs related to pregnancy and childbirth, but none of these policies have yet been implemented.

The market and public are worried that the current government's policy priorities may be shifting. Some believe that, compared to previous governments, the current Japanese government has shifted its focus to national security and policies concerning foreigners. Former Prime Minister Fumio Kishida launched a 3.6 trillion yen (about 23.1 billion USD) childcare package in 2023, calling it an "unprecedented measure to counter the declining birthrate," a position later continued by Shigeru Ishiba.

Under Sanae Takaichi, children's policy has been integrated into a broader demographic agenda that includes policies targeting foreigners. Minister Hitoshi Kikawada, who is in charge of tackling population decline, is currently also overseeing 11 other portfolios, including territorial disputes and food safety, leading to widespread concerns that the birthrate issue may have been shelved.

Historical Data Highlights Long-term Challenges

From a data perspective, the preliminary data released on Thursday is broad, covering foreign residents living in Japan and babies born to Japanese citizens living overseas.

In contrast, the final data, which has a narrower scope, better reflects Japan's domestic demographic dilemma. The final figure for 2024, counting only Japanese citizens living in Japan, was approximately 686,000—setting a historic low since records began in 1899. The final data for 2025 is expected to be officially released in September this year, which will likely further reveal the true depth of demographic decline.

Global Fertility Incentives Intensify

Japan is not alone on the path to reversing demographic decline: several major economies worldwide are intensively rolling out various economic incentive policies.

In South Korea, which is also facing demographic pressure, data released Wednesday showed that thanks to incentives aimed at reducing childcare costs and a gradual recovery in marriage rates after long-term stagnation, the country's birthrate rose for the second consecutive year in 2025.

In addition, according to Bloomberg, US President Trump has proposed offering a $5,000 baby bonus. Meanwhile, China plans to grant an annual subsidy of 3,600 yuan (about $500 USD) for children under three years old, attempting to ease the childcare burden for families through direct economic support.

Risk Warning and DisclaimerThe market involves risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investments made accordingly are at your own risk. ```