China has become one of the most expensive countries in the world to raise a child. This is evident from the national average cost that parents have to spend to raise a child from birth to the age of 17.
According to the YuWa Population Research Institute, the average cost of raising a child in China from birth to the age of 17 is around US$74,800 or approximately Rp1.16 billion (assuming an exchange rate of Rp15,626/US$). If parents want to finance their child until they obtain a bachelor’s degree, this amount could increase to over US$94,500 or around Rp1.47 billion.
The same research also revealed that the cost of raising a child in China until the age of 18 is 6.3 times higher than the country’s per capita Gross Domestic Product (GDP). This ratio places China in second position after South Korea as the country with the highest cost of raising a child in the world.
On the other hand, the national average cost of raising a child in South Korea is 7.79 times the GDP per capita. For comparison, here are the costs of raising a child in several other countries:
1. Australia: 2.08 times GDP per capita
2. France: 2.24 times GDP per capita
3. United States (US): 4.11 times GDP per capita
4. Japan: 4.26 times GDP per capita
The high cost of raising a child in China has led to a decrease in the desire of the Chinese population to have children. This has resulted in a significant decline in the population of China in the past two years.
The expensive cost of giving birth and the difficulty for women to balance family and work are among the reasons why people in China are refraining from having children, making it the country with the lowest birth rate in the world.
As of 2023, China experienced its lowest birth rate since 1949 and was surpassed by India as the country with the densest population in the world. This demographic crisis has had a significant impact on China, the world’s second-largest economy.
Despite the government’s efforts to reverse this trend by relaxing the restrictions on the number of children allowed per couple, launching national campaigns to encourage families to have more children, and offering financial incentives, there has been no significant positive impact on the birth rate.
Most women feel that the sacrifices they make are not worth the rewards, such as facing potential unfair treatment in the workplace when taking maternity leave.
In 2023, China’s economy grew by 5.2%, slightly better than the official target set by Beijing. However, China continues to face various challenges, including a record decline in property prices, rising youth unemployment, deflationary pressure, increased corporate defaults, and financial pressure on local governments.
The report warns that a declining birth rate could have a significant impact on economic growth, overall societal happiness, and China’s position in the world. In order to address this issue, the authors of the study urge national policies to reduce childbirth costs as soon as possible, such as cash subsidies, tax and housing incentives, equal maternity and paternity leave, protection of reproductive rights of single women, and educational reforms.
