60 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 43 | 2025 The economic and social implications of the declining birth rate in Taiwan Ella R. Rossetti Taiwan suffers from an ultralow birth rate and a soon-to-be superaged population, consequences of societal norms and limited access to fertility support. Without action, this combination has the potential to facilitate economic decline. To mitigate the population crisis, Taiwan must modernize its societal norms surrounding working women and motherhood, increase availability of fertility options, and liberalize immigration policies. Background Across East Asia, high-income countries are experiencing ultralow fertility, which has led to simultaneously declining and aging populations (Chen, 2024). Hong Kong, Japan, Singapore, South Korea, and Taiwan are among the world leaders in having both the highest median ages for women’s first births and the steepest declines in birth rates. The most significant challenges arise when the number of births required to maintain current population levels drops, which happened for the first time in Taiwan in 1984 (Cheng & Loichinger, 2017). This decrease signals that a population is beginning to decline, as there are fewer children than parents. The birth rate has been dropping consistently since Taiwan’s founding in 1949. In 1950, one year after Chiang Kai-shek’s government and approximately two million followers fled to Taiwan, the number of births was estimated at 6.48 births per female (United Nations, 2023). Decade after decade, the birth rate declined: from 3.98 in 1970, to 1.79 in 1990, and to 1.47 in 2000. An all-time low of 0.87 was reached in 2023. In addition to this decline, the elderly are living longer and accounting for more of the population. From 2001 to 2021, the mean life expectancy increased from 79.7 to 84.3 years for women and from 74.1 to 77.7 years for men. Likewise, the share of the population ages 65 and older has increased, from 4.3% in 1980 to 17.5% in 2021, with a reduction of the youth population, ages 0–14, from 32.1% of the population in 1980 to 12.1% in 2022 (National Development Council, 2022). As seen in Figure 1, Figure 1 Age groups as percentages of Taiwan’s total population Source: National Development Council, 2024a. Figure 1 Age groups as percentages of Taiwan’s total population Source: National Development Council, 2024a. 2005 2010 2015 2020 2025 2030 2035 Percentage of population 80 70 60 50 40 30 20 10 0 doi:10.18275/pbe-v043-009
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