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Vlahovic double fires Juventus to 3-0 win over Sassuolo

TURIN — A stunning first-half brace by striker Dusan Vlahovic helped Juventus to a 3-0 win over Sassuolo in Serie A on Tuesday as Massimiliano Allegri’s side extended their unbeaten league run to 15 games in front of a sold-out home crowd.

Juve remain second in the standings on 49 points, two points behind leaders Inter Milan and seven above third-placed AC Milan.

Juve allowed the visitors more possession but stayed in control of a lively clash at the Juventus Stadium and Vlahovic broke the deadlock in the 15th minute with a rasping shot from just outside the box.

The Serbia striker made it 2-0 before the break with a free kick from long range for his ninth goal of the season.

“Vlahovic played a good game, he was much more calm,” Allegri told a press conference.

“This morning I spoke to him and told him that he wanted to overdo it (in the Coppa Italia quarter-final) against Frosinone, he got into an argument with the referee. Tonight he was much more lucid.”

The 23-year-old has been involved in a goal in four consecutive Serie A appearances, with three goals and two assists, for the first time in more than three years.

“Dusan went through a complicated moment because he wasn’t well. Now he’s working hard to improve and is finding the right calm to manage the match,” Allegri added.

Sassuolo, who inflicted Juve’s only loss of the season in all competitions in a 4-2 defeat in the reverse fixture, went close in the 53rd minute through forward Domenico Berardi, who struck just wide from the edge of the box.

Juve keeper Wojciech Szczesny pulled off a brilliant save to deny yet another powerful shot from Berardi 10 minutes later before substitute Federico Chiesa sealed the win for the hosts in the 89th minute with a low strike into the middle of the goal.

Juve next travel to 13th-placed Lecce on Sunday where they can leapfrog Inter into top spot as Simone Inzaghi’s men only return to Serie A action on Jan. 28 following the Italian Super Cup played in Saudi Arabia.

Sassuolo — who are 14th, with two points separating them from the relegation zone — next visit mid-table Monza. — Reuters

Celtics, the NBA’s best, host worst-in-West Spurs

BOSTON Celtics guard Jaylen Brown (7) drives the ball against Cleveland Cavaliers forward Kevin Love (0) in the half quarter at TD Garden. — REUTERS

THE Boston Celtics are hoping to have Jaylen Brown in the lineup when they face the visiting San Antonio Spurs on Wednesday.

Brown sat out Boston’s 105-96 victory over the Raptors on Monday because of a hyperextended right knee. Celtics coach Joe Mazzulla said before Monday’s game that Brown was dealing with soreness in the knee, but the injury was not considered serious.

Brown is averaging 23.4 points, 5.2 rebounds and 3.5 assists per game this season.

“I think this year we’ve shown that regardless of who’s out there’s an affirmation that everyone is going to step up,” Mazzulla said.

Jayson Tatum had 19 points and 14 rebounds in Monday’s win, which improved Boston’s home record to 19-0. Jrue Holiday tossed in a season-high 22 points, eight of which came in the fourth quarter. Derrick White also scored 22 points, including a key 3-pointer with just over a minute to play.

“I just took the opportunities that were given to me and really just tried to be aggressive at both ends of the floor,” Holiday said. “(White is) an All-Star. I think the things that he does a lot of times go unnoticed.

“The way that he plays, the way that he carries this team – especially with JB out (against Toronto) he hit a big shot there in the corner – that’s what D. White does.”

The Spurs, who have the worst record in the Western Conference, are coming off Monday’s 109-99 loss at Atlanta. The Hawks led 46-16 in the second quarter and 69-34 at halftime.

San Antonio coach Gregg Popovich sent a message to his team by sending out three reserves with Jeremy Sochan and Julian Champagnie to start the second half.

“I thought the starting team in the third quarter made their point, and the first team came back in and competed the way they’re getting paid to compete, so in that sense it made it a good night,” Popovich said.

San Antonio’s Victor Wembanyama, a 7-foot-4 rookie, was scoreless at halftime, but had 26 points (nine dunks) in the second half. He also finished the game with 13 rebounds.

Wembanyama, the No. 1 pick in last year’s NBA draft, is averaging 19.6 points and 10.3 rebounds in 28.6 minutes per game.

“I’ve gotten better at adapting my game more to the league, and it shows,” Wembanyama said. “My efficiency, especially since being on restricted minutes, is up, so there’s real progress.

“(Against Atlanta) a majority of bench players showed us how to do it. It worked.”

Wednesday’s matchup will be the second game between the teams this season. Tatum scored 25 points and Brown finished with 24 when Boston prevailed 134-101 at San Antonio on Dec. 31. The Celtics built a 37-point lead in that game and rested their starters for most of the fourth quarter.

Devin Vassell led San Antonio with 22 points in the loss. Wembanyama had 21 points and seven rebounds.

The Celtics, who have the best record in the NBA, will be trying to extend their two-game winning streak. The Spurs have lost two in a row and seven of their past nine. — Reuters

Kings coach Mike Brown fined $50K for criticizing officials

THE NBA fined Sacramento Kings coach Mike Brown $50,000 on Tuesday for criticism of referees during and after the team’s most recent game.

Specifically, Brown entered the court of play while yelling at referee Intae Hwang, leading to the coach’s ejection Sunday in a 143-142 overtime loss at the Milwaukee Bucks.

Brown then used a laptop during his postgame press conference to point out multiple calls he disagreed with.

“The referees are human, and they’re going to make mistakes, but you just hope that there’s some sort of consistency and there’s some sort of communication between the refs,” Brown said. “The refs (Sunday), they were great, they communicated with me all night. But in terms of consistency, you guys saw it right here. In my opinion, the consistency wasn’t here (Sunday).”

The NBA’s news release described Brown’s actions as “aggressively pursuing a game official during live play, and … publicly criticizing the officiating.”

In 2012, when he coached the Los Angeles Lakers, Brown was suspended one game without pay and fined $25,000 for making contact with an official. — Reuters

Smart maintains fastest download speed — Ookla

FREEPIK

By Miguel Hanz L. Antivola, Reporter

Smart Communications, Inc., the wireless unit of PLDT Inc., posted the fastest median download speed of 37.64 megabits per second (Mbps) in the fourth quarter of 2023, maintaining its lead among mobile operators, according to global network testing firm Ookla.

In its fourth quarter mobile performance report for the Philippines released on Wednesday, Ookla said Ayala-led Globe Telecom, Inc. had a median download speed of 26.44 Mbps, followed by DITO Telecommunity Corp. with 19.74 Mbps.

Out of the three operators, Smart delivered a steady rise in median download speed throughout last year, up from 35.56 Mbps in the third quarter, 35.39 Mbps in the second quarter, and 33.39 Mbps in the first quarter.

For major cell phone manufacturers in the fourth quarter, devices from Apple recorded the fastest median download speed with 51.19 Mbps.

It was followed by Samsung (37.76 Mbps), Xiaomi (30.66 Mbps), Huawei (19.98 Mbps), and Infinix (18.90 Mbps).

However, in terms of median upload speed, Infinix topped the list with 7.49 Mbps, followed by Samsung (7.40 Mbps), Xiaomi (7.34 Mbps), Apple (7.13 Mbps), and Huawei (6.05 Mbps).

In December last year, the Philippines posted a median download speed of 28.12 Mbps and upload speed of 6.89 Mbps.

Ookla released 52 new market analyses for the fourth quarter, with insights from its Speedtest Intelligence platform.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

China’s Q4 GDP shows a patchy recovery, raises case for stimulus

A MAn rides a bike on a street in Shanghai, China, Oct. 13, 2022. — REUTERS

BEIJING — China’s economy grew slightly slower than expected in the fourth quarter (Q4), with a deepening property crisis, mounting deflationary pressures and weak demand reinforcing expectations that Beijing will have to roll out more stimulus measures soon.

Confounding most analysts’ expectations, the world’s second-largest economy has struggled to mount a strong and sustainable post-COVID pandemic bounce, burdened by the protracted real estate slump, weak consumer and business confidence, and mounting local government debts.

Gross domestic product (GDP) grew 5.2% in October-December from a year earlier, data from the National Bureau of Statistics (NBS) data showed on Wednesday, quickening from 4.9% in the third quarter but missing a 5.3% forecast in a Reuters poll.

The pace was solid enough to ensure Beijing met its annual growth target of around 5%, but analysts said the recovery remains shaky and jump-starting activity in 2024 could be a lot more challenging.

“The recovery from COVID — disappointing as it was — is over,” according to China Beige Book International’s latest survey released on Wednesday.

“Any true acceleration (this year) will require either a major global upside surprise or more active government policy.”

For the full-year 2023, the economy grew 5.2%, partly helped by the previous year’s low-base effect which was marked by COVID-19 lockdowns. Analysts had forecast 5.2% growth.

Highlighting some loss of momentum late in the year, on a quarter-by-quarter basis GDP grew 1.0% in October-December, slowing from a revised 1.5% gain in the previous quarter.

Policy insiders expect Beijing will maintain a similar growth target of around 5% for this year.

The head of NBS, Kang Yi, said at a press conference in Beijing that China’s 2023 growth was “hard won”, but added the economy faces a complex external environment and insufficient demand in 2024.

Stocks in China, already near five-year lows, fell after the disappointing data as did shares in Hong Kong, while the yuan eased. The currency has come under fresh pressure recently as market expectations grow that policymakers will have to commit soon to more interest rate cuts and other support measures.

“At present, our country’s government debt level and inflation rate are both low, and the policy toolbox is constantly being enriched,” Mr. Kang said. “Fiscal, monetary and other policies have relatively large room for maneuvering, and there are conditions and space for intensifying the implementation of macro policies.”

SHAKY RECOVERY
December activity indicators released along with the GDP data showed factory output growth quickened at the fastest pace since February 2022, partly driven by stronger growth in automobile production, but retail sales grew at the slowest pace since September and investment growth remained tepid.

Data on the property sector, once a key driver of the economy, was far more grim.

China’s December new home prices fell at the fastest pace in nearly nine years, marking the sixth straight month of declines, NBS data showed.

Property sales by floor area fell 8.5% for the year while new construction starts plunged 20.4%. “I think markets were disappointed they didn’t cut interest rates on Monday, but it seems they are thinking about more targeted measures,” said Woei Chen Ho, economist at UOB. “The property issues are not fixed by broad-based rate cuts.”

On Monday, the central bank left the medium-term policy rate unchanged, defying market expectations for a cut as pressure on the yuan currency continued to limit the scope of monetary easing.

“The piecemeal rollout of support from mid-year has done little to turn things around. It’s clear that China’s economy needs extra stimulus,” said Harry Murphy Cruise, economist at Moody’s Analytics.

“Direct support for households could be the crowbar needed to pry open wallets, but the prospect of such support has been a nonstarter for officials in recent years. Instead, monetary easing and new debt issuance for infrastructure, energy and manufacturing projects look more likely.”

POPULATION FALLS AGAIN
As businesses remained wary of adding workers in the face of many uncertainties ahead, the nationwide survey-based jobless rate increased to 5.1% in December from November’s 5.0%, NBS data showed.

NBS also resumed the publication of youth unemployment data, which it had suspended for five months. The December survey-based jobless rate for 16-24 years olds, excluding college students, was at 14.9%, compared with a record high of 21.3% in June.

Recent data suggested the economy was starting 2024 on shaky footing, with persistent deflationary pressures and a slight pick-up in exports unlikely to kindle a quick turnaround in lackluster factory activity. December bank lending was also weak. 

“While we still anticipate some near-term boost from policy easing, this is unlikely to prevent a renewed slowdown later this year,” said Julian Evans-Pritchard, head of China Economics at Capital Economics.

“Although the government met its 2023 GDP growth target of ‘around 5.0%’, achieving the same pace of expansion in 2024 will prove a lot more challenging.”

Adding to concerns over China’s longer-term growth prospects, the country’s population fell for a second consecutive year in 2023. The total number of people in China dropped by 2.08 million to 1.409 billion in 2023, a faster decline than in 2022. — Reuters

Norway wealth fund CEO at Davos sees slow investment returns in 2024

ANDREY ANDREYEV-UNSPLASH

DAVOS, Switzerland — The chief executive officer (CEO) of Norway’s $1.5-trillion sovereign wealth fund, the world’s largest, told Reuters on Tuesday that return on its investments would likely be “slow” in 2024 due to high interest rates, persistent inflation and geopolitical risk.

The fund invests the Norwegian state’s revenues from oil and gas production in equities, bonds, property and renewable projects abroad.

It is the world’s largest sovereign wealth fund, holding stakes in more than 9,200 companies globally and owning 1.5% of all listed stocks.

“I think It’s going to be a very slow year. At best, pedestrian, because I think (interest) rates will be slow to get down,” Nicolai Tangen said in an interview during the World Economic Forum (WEF) annual meeting.

Inflation would remain persistent and come down “more slowly than I think is generally expected,” he said, citing higher freight rates for shipping, continuing high prices for fuel for transport and, “perhaps more importantly,” higher wages.

“Wage demand is pretty high across a lot of geographies, which means that inflation is really … sticky,” he said.

Mr. Tangen also cited the general geopolitical situation, with the continuing war in Ukraine and the war in Gaza, and “a lot of elections in many parts of the world” as a risk factor for the fund’s investments.

“We have geopolitical uncertainty in many places, that’s well known. And we have, you know, (company) valuations which are really relatively demanding,” he said.

“So I don’t see a lot of good news here.” — Reuters

Canada’s planned curbs on overseas student work may hurt tight job market

A Canadian dollar coin is pictured in this illustration picture taken in Toronto, Jan. 23, 2015. — REUTERS

TORONTO — Canada’s planned curbs on work by international students could spark shortages of temporary workers in food services and retail industries as employers are wrestling with a tight labor market and wage inflation in some pockets of the economy.

Last month, Canadian Immigration Minister Marc Miller outlined measures, including slashing the number of allowable work hours, to address bottlenecks created by a surge in international students, who have been blamed for rental shortages.

Canadians are facing increased challenges in securing affordable housing as rents climb nationwide — rising 7.7% in December from a year earlier, according to Statscan.

Canada is planning additional measures to reduce the number of international students coming to Canada, including possibly a cap, and will introduce them during the first half of this year, Mr. Miller told Reuters in an interview on Monday.

Canada has emerged as a popular destination for international students since it is relatively easy to obtain work permits after finishing courses. International students are also a cash cow for universities as they bring in about C$22 billion ($16.4 billion) annually, and the government is facing push back from student associations and advocates over its new proposals.

“We need to have international students coming in. It’s a key group working in the industry for us,” said Maximilien Roy, vice president of the industry lobby group Restaurant Canada, from Quebec Province.

Restaurants across Canada are grappling with labor shortages with nearly 100,000 vacancies, and international students made up 4.6% of 1.1 million workers in the food service industry in 2023, Mr. Roy added.

The government plans to limit international students’ weekly work hours to 20 from 40 hours starting in April. Mr. Miller said the measures are necessary to improve the overall quality of education and the integrity of the immigration system.

“The main purpose of international students to be in Canada is to study,” Mr. Miller said while proposing the new measures.

Canada’s international student intake is expected to touch a record 900,000 for 2023, about three times that of a decade ago, according to government data. That has provided a plentiful supply of temporary workers for employers and helped keep overall costs in check.

FINANCIAL INDEPENDENCE
Reuters spoke to international students, labor experts, restaurant workers and officials from the food and retail industries, who said the disadvantages of the plan outweighed its benefits.

“I came to Canada because I wanted to be independent myself and no one should pay for my tuition fees,” said Bhavjeet Singh Kalra, 21, an undergraduate student seeking a public relations degree at Humber College in Ontario, a sentiment shared by many international students.

Mr. Kalra worked 40 hours a week during the summer break, which helped him fund his tuition after his parents covered the initial deposit of C$10,000 ($7,420) for the study permit application and the first year’s tuition fees.

Many students expressed concern that the new rules will expose them to exploitation, as some will inevitably find themselves working beyond the specified hours without adequate protections.

Pat Chaisang, a former international student from Thailand who founded Isempower, a job-search platform for overseas students, said cutting the working hours will limit students’ ability to gain valuable work experience.

“Providing a solid work opportunity that match their area of study to help them transition into the workforce,” she said.

A lack of temporary workers also risks pushing up wage growth, which has been a concern for the central bank in its fight against inflation.

Canada’s wage growth accelerated to an annual rate of 5.7% in December from 5.0% in November. Employers struggled to fill nearly 700,000 jobs in October last year, according to StatsCan data.

Canadian Alliance of Student Association said barriers rather than work hours should be reduced for international students. In a statement, the group said that would enhance their educational experience, and “will ensure that Canada has the skilled workers we need for a thriving economy.” — Reuters

France to reform parental leave after births hit postwar low

A PEDESTRIAN and her dog stand in front of a window display at the Printemps department store in Paris, France, Nov. 17, 2020. — REUTERS

PARIS — French President Emmanuel Macron promised on Tuesday to overhaul parental leave so it pays better after France saw the lowest number of births since World War II last year, in a blow to its traditionally strong demographic profile.

France registered 678,000 births last year, representing a decrease of 7% from 2022 and down 20% since peaking in 2020, INSEE said in its annual census report.

The country has for decades been an outlier compared to other European countries, avoiding a collapse in birth rates as seen in Germany, Italy and Spain.

Demographers have traditionally put this down to France’s generous health and childcare system as well as tax breaks and other benefits for having children, especially three or more.

That has helped soften the impact of an aging population while contributing to the country’s long-term growth prospects, which economists say are generally determined by demographics, productivity gains and labor force participation.

“France will only be stronger if it revives the birth rate,” Mr. Macron said during a wide-ranging news conference.

“A new, better paid parental leave will allow both parents to be with their children for six months if they want,” he added.

In addition to basic maternity leave, French parents can currently take additional parental leave for one year with the possibly of renewing twice.

However, it only pays slightly more than 400 euros ($435) per month, which Mr. Macron said was a source of anxiety for some parents. He said it also cut mothers off from the labor market too long.

INSEE said the average number of children per mother fell last year to a three-decade low of 1.68 from 1.79 in 2022. In 2021, France had the highest birth rate in the European Union along with the Czech Republic at 1.83, the last year for which comparative figures are available.

Not only is the 2023 figure below the 2.2 generally considered to be necessary to maintain population levels in developed countries, it is also below the 1.8 births estimate that underpinned a deeply contested 2023 retirement reform.

That could mean that if the birth rate stays at 2023 levels the reform will not reduce the pension deficit as planned.

However, a recovery in the birth rate in the coming years is possible as people born in 2000-2010 — a period of high births — themselves begin to have children, researchers at the Institut National d’Etudes Demographiques said in a note.

While people are having fewer children, pro-family Unis pour les Familles association says that the decline does not mean people want fewer children but rather conditions are not necessarily good. 

In an Opinionway poll of 11,000 people for the association, two-thirds who did not have children said that they wanted to while one out of five parents said they would have liked more children.

The most common reasons people gave for not having more children were concerns about the economic, social and climatic outlook, cited by 30% of those polled. Some 28% said raising children cost too much.

The successive crises over the COVID-19 outbreak, surging energy prices and record inflation have taken a heavy toll on household confidence, which has struggled to recover from record lows reached in mid 2022, according to INSEE’s monthly survey. — Reuters

NCC Group Manila to build local talent for cybersecurity

PIXABAY

By Miguel Hanz L. Antivola, Reporter

NCC Group, a global cybersecurity advisory company from the United Kingdom, has opened an office in the Philippines in a bid to develop local technology talent and enhance its global capacity for clients.

“Our role is to build the [cybersecurity] talent that is able to support the changing environment we’re all operating in,” Mike Maddison, NCC Group global chief executive officer, told reporters during its Manila office launch on Wednesday.

“It has grown as an attractive career path for people now, especially with the scale of the skills gap on a global basis in cybersecurity capability,” he noted.

“Being able to tap that in the Philippines is incredibly exciting,” he added on Manila being the company’s second office location in Southeast Asia after Singapore.

The cybersecurity workforce gap in the Asia Pacific region rose to about 2.7 million, up by 23.4% from 2022’s 2.2 million, according to a study by non-profit ISC2. Globally, the shortfall has risen to about 4 million, with a 12.6% year on year increase.

“Organizations may have a number of cybersecurity workers, but if those workers all lack certain critical skills, that surplus of headcount can be completely negated,” the study said.

It also noted the biggest skills gap in areas deemed important for mitigation, such as cloud security (35%), artificial intelligence (AI) or machine learning (32%), zero trust (29%), and penetration testing (27%).

The Fortinet 2023 global cybersecurity skills gap report showed 86% of IT and cybersecurity decision makers in the Philippines and Malaysia have agreed that the skills shortage creates more cyber risks for their organizations.

Over half have admitted struggling to recruit and retain qualified professionals for their security team, it added.

Additionally, a report by Palo Alto Networks said the Philippines has been hit the hardest by cyberattacks among its Southeast Asian peers this year.

NCC Group’s Mr. Maddison noted the public, intellectual property, and financial service sectors are those expected to see the most number of cybersecurity challenges.

“Those heavily regulated sectors with sensitive information,” he said.

Saira Acuna, Philippine country director at NCC Group said the Manila office has so far hired 60 talents, with an open goal of building a Filipino community of cyber leaders through its junior and comprehensive on-the-job training programs.

It has started forging partnerships with the public sector through the Justice department and the IT and Business Process Association of the Philippines.

It is also eyeing engagements with educational institutions to help share curricula and sponsor programs for the creation of job-ready cybersecurity talent.

“I hope Filipinos will recognize this opportunity to be part of a burgeoning industry,” Ms. Acuna said on heeding the call for citizens to grow a career in cybersecurity.

Philippines bans poultry imports from California, Ohio to prevent bird flu spread

MANILA — The Philippines’ farm ministry said on Wednesday it has banned poultry imports from California and Ohio in the United States because of several outbreaks there of highly pathogenic avian influenza.

The ban, which aims to protect the health of the Philippines’ poultry population, covers imports of domesticated and wild birds, including poultry meat and eggs, the ministry said in a statement.

All shipments coming from California and Ohio that are already in transit, loaded, or accepted at Philippine ports before January 15 will be allowed entry if they were slaughtered two weeks before the outbreak began, it added.

In 2023, the Philippines imported 166,356 tons of poultry products worth $175.8 million from the United States, which is the second-largest supplier to the Southeast Asian nation accounting for 40% of arrivals, government data showed.

Earlier this month, the Philippines halted imports of poultry products from Belgium and France, also because of a bird flu outbreak.

Bird flu is carried by migrating wild birds and can then be transmitted between farms. It has ravaged flocks around the world in recent years, disrupting supply and pushing up food prices. — Reuters

Malaysia to review migrant labor deals to stamp out exploitation

KUALA LUMPUR— Malaysia will review bilateral agreements with 15 nations from which it sources laborers in a bid to address exploitative practices and manpower imbalances that have left thousands of migrant workers stranded without jobs, officials said.

Since last year, thousands of migrants, mostly from Bangladesh and Nepal, have been left in limbo after arriving in Malaysia, where they were told that jobs promised to them in exchange for steep recruitment fees were no longer available.

The plight of the migrants coincided with concerns over workplace abuses in Malaysia, with several companies facing US bans over the use of forced labor in recent years. Many laborers said they had not been paid any wages.

Speaking to reporters late on Tuesday, the labor and home affairs ministers said the distribution of laborers was uneven across the economy, prompting a need to review the bilateral agreements.

They said Malaysia still had a shortage of workers in the agriculture and plantations sector, while quotas have been exceeded in other industries.

“We will revisit the agreements looking at various elements including fees, costs, contract conditions, health and so on,” Home Minister Saifuddin Nasution Ismail said, adding that the government would allow the transfer of worker quotas across sectors.

Workers from Indonesia, Bangladesh and Nepal account for over 70% of Malaysia’s migrant labor, with the remainder coming from countries including India, Vietnam, Pakistan, and Thailand.

Human Resources Minister Steven Sim said authorities had completed investigations into five firms involved in hiring hundreds of workers who later found themselves without jobs.

He said employers who hired such workers must pay them wages even though they do not have jobs, adding that companies and individuals who violate the law will be barred from hiring migrant laborers.

Sim said 751 Bangladesh migrant workers had filed cases with the labor department to claim unpaid wages, involving a total of 2.2 million ringgit ($467,687). — Reuters

China’s population drops for 2nd year, raises long-term growth concerns

JAVIER QUIROGA-UNSPLASH

BEIJING — China’s population fell for a second consecutive year in 2023, as a record low birth rate and a wave of COVID-19 deaths when strict lockdowns ended accelerated a downturn that will have profound long-term effects on the economy’s growth potential.

The National Bureau of Statistics said the total number of people in China dropped by 2.08 million, or 0.15%, to 1.409 billion in 2023.

That was well above the population decline of 850,000 in 2022, which had been the first since 1961 during the Great Famine of the Mao Zedong era.

China experienced a dramatic nationwide COVID surge early last year after three years of tight screening and quarantine measures kept the virus largely contained until authorities abruptly lifted curbs in December 2022.

Total deaths last year rose 6.6% to 11.1 million, with the death rate reaching the highest level since 1974 during the Cultural Revolution.

New births fell 5.7% to 9.02 million and the birth rate was a record low 6.39 births per 1,000 people, down from a rate of 6.77 births in 2022.

Births in the country have been plummeting for decades as a result of the one-child policy implemented from 1980 to 2015 and its rapid urbanisation during that period. As with earlier economic booms in Japan and South Korea, large populations moved from China’s rural farms into cities, where having children is more expensive.

Japan’s birth rate was 6.3 per 1,000 people in 2022, while South Korea’s rate was 4.9.

Further denting appetite for baby-making in China in 2023, youth unemployment hit record highs, wages for many white-collar workers fell, and a crisis in the property sector, where more than two-thirds of household wealth is stored, intensified.

The fresh data adds to concerns that the world’s No.2 economy’s growth prospects are diminishing due to fewer workers and consumers, while the rising costs of elderly care and retirement benefits put more strain on indebted local governments.

India surpassed China as the world’s most populous nation last year, according to estimates by the United Nations, fueling more debate over the merits of relocating some China-based supply chains to other markets, especially as geopolitical tensions rise between Beijing and Washington.

Long-term, UN experts see China’s population shrinking by 109 million by 2050, more than triple the decline of their previous forecast in 2019.

POLICY ISSUES

China’s 2023 rate of 7.87 deaths per 1,000 people was higher than a rate of 7.37 deaths in 2022.

The country’s retirement-age population, aged 60 and over, is expected to increase to more than 400 million by 2035 – more than the entire population of the United States – from about 280 million people currently.

The state-run Chinese Academy of Sciences sees the pension system running out of money by 2035.

High childcare and education costs put many Chinese couples off having children, while uncertainty in the job market discourages women from pausing their careers. Gender discrimination and traditional expectations that women assume the caretaker role in the family exacerbate the issue, demographers say.

President Xi Jinping said last year that women should tell “good family tradition stories,” adding it was necessary to “actively cultivate a new culture of marriage and childbearing,” which he linked to national development.

Local governments have announced various measures to encourage childbirth including tax deductions, longer maternity leave and housing subsidies.

But many of the policies have not been implemented due to insufficient funding and a lack of motivation by local governments, said a Beijing policy institute, urging a unified nationwide family subsidy scheme instead.

China may get some relief next year from a pick-up in marriages in 2023, when the COVID backlog cleared. Marriages are a leading indicator for birth rates in China, where most single women cannot access child-raising benefits. — Reuters

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