Taiwan’s top research institute, the Academia Sinica, has said that the country’s low fertility rate will bring down its living standards.
While birth rate refers to the number of children versus the total population, fertility rate is the average number of children a woman has. According to the United Nations, if a country is to maintain its population level, the fertility rate must stay above 2.1. That is, every woman needs to have 2.1 children. But Taiwan’s fertility rate now stands at 1.26, and the Academia Sinica believes that this extremely low number will hurt the nation’s living standards.
The research institute has compiled a report that forecasts different countries’ future economic performance by analyzing their demographic data. According to the report, a 1.85 fertility rate will allow a country’s government to enjoy the highest possible surplus. If a country wants to drive up its per capital purchasing power parity, its fertility rate has to stay between 1.43 to 2.15.
By contrast, Taiwan’s fertility rate dipped to 1.065 last year. That’s the lowest rate in the world. The Academia Sinica is urging the government to propose a more effective population policy in order to mitigate the impact of demographic changes in Taiwan.