BEIJING, (Reuters) –Mainland China’s birthrate fell to a record-low level in 2021. This continues a downward trend which led Beijing to allow couples up to three children last year.

China’s decades-old policy of one child was scrapped in 2016. It has now adopted a two-child policy to reduce the risks of an aging population. Couples have been discouraged from having any more children by the high costs associated with urban living.

This 2021 rate, 7.52 births for every 1,000 persons, was the lowest recorded since 1949 when the National Statistics Bureau started collecting the data. Officials were further under pressure to increase births.

According to data, China’s natural growth rate, which does not include migration, was 0.034% in 2021. This is the lowest level since 1960.

Pinpoint Asset management’s chief economist Zhiwei Zhang stated that while the demographic problem is well-known, population aging has been moving at a faster pace than anticipated.

It suggests China may have reached its peak population in 2021. Zhang also said that it indicates China’s potential for growth may be slowing than predicted.

China allows couples to have up to three children. It also has policies to reduce the financial burden associated with raising children. China banned after-school tuition for profit last year.

China’s declining working-age population will put pressure on China’s ability pay for and provide care to an aging country.

According to data, there were 10.62million births in 2021 compared with 12,000,000 in 2020.

Huang Wenzheng is a Beijing-based demographer and expert at the Center for China and Globalization. He said that birth rates are expected to fluctuate between 10 and 20 million, before falling further in the absence any policy changes.

Huang explained that “but policies will provide greater support in the birth rate over the long term.”

Career advancements can be linked to having children, economic incentives or direct cash payments by the society.

In 2020, the birth rate was 8.52 per 1000 people.