Reda Farran

about 2 months ago5 mins

China’s Population Is Shrinking And Creating Opportunities For AI

China’s Population Is Shrinking And Creating Opportunities For AI

Reda Farran

about 2 months ago5 mins

China’s Population Is Shrinking And Creating Opportunities For AI
  • China’s population shrank in 2022 for the first time in six decades amid a sharp drop in births. The country’s population is forecast to continue to steadily decline from now.

  • A shrinking population will dent China’s labor market, demand for products and housing, the country’s public finances, and more. That’ll ultimately cut into the long-term growth potential of the country’s economy.

  • China will try to offset the decline in its workforce with productivity gains. You can convert that into an opportunity by investing in automation firms with large exposures to the country, or via the Global X China Robotics And AI ETF.

China’s population shrank in 2022 for the first time in six decades amid a sharp drop in births. The country’s population is forecast to continue to steadily decline from now.

A shrinking population will dent China’s labor market, demand for products and housing, the country’s public finances, and more. That’ll ultimately cut into the long-term growth potential of the country’s economy.

China will try to offset the decline in its workforce with productivity gains. You can convert that into an opportunity by investing in automation firms with large exposures to the country, or via the Global X China Robotics And AI ETF.

According to the latest data, there were just 1.41 billion people living in China at the end of last year – some 850,000 fewer than at the end of 2021. It was the first decline in the country’s population in over six decades – and the start of a trend that experts expect to continue for some time. Here’s how it’s likely to impact demand for artificial intelligence (AI) and how to turn that into an investment opportunity.

How did China’s population end up shrinking?

The short answer: fewer births and more deaths. There were just 9.56 million babies born in China last year – the fewest since at least 1950, despite efforts by the government to encourage families to have more children. Meanwhile, there were 10.41 million deaths in

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