Japan is one of the world's oldest societies. It's 'on the cusp' of being unable to function

It's "now or never" for one of the world's oldest societies to take action to arrest its shrinking population, Japan's Prime Minister Fumio Kishida says.

Japanese flags adorn a popular street in Tokyo. Japan's Prime Minister Fumio Kishida said on Monday the country is on the cusp of being unabmaintaining societal functions due to its declining birth rate. Source: Getty / Richard A. Brooks/AFP

Key Points

• In Japan the median age is 49, the highest in the world behind only the tiny city-state of Monaco.
• Births fell to a new record low last year, according to official estimates, dropping below 800,000 for the first time.
• Prime Minister Fumio Kishida said it's "now or never" for the country to tackle its declining birth rate.

Japanese Prime Minister Fumio Kishida has pledged to take urgent steps to tackle the country's declining birth rate, saying it was "now or never" for one of the world's oldest societies.

Japan has in recent years been trying to encourage its people to have more children with promises of cash bonuses and better benefits, but it remains one of the most expensive places in the world to raise a child, according to surveys.

Births plunged to a new record low last year, according to official estimates, dropping below 800,000 for the first time - a watershed moment that came eight years earlier than the government had expected.

That most likely precipitated a further population decline in a country where the median age is 49, the highest in the world behind only the tiny city-state of Monaco.

Japanese Prime Minister Fumio Kishida delivers his policy speech during the plenary session of the House of Representatives at the National Diet in Tokyo on Monday. Source: AAP / Masanori Genko/AP

"Our nation is on the cusp of whether it can maintain its societal functions," Mr Kishida said in a policy speech at the opening of this year's parliamentary session on Monday.

"It is now or never when it comes to policies regarding births and child-rearing - it is an issue that simply cannot wait any longer," he added.

Mr Kishida said he would submit plans to double the budget for child-related policies by June, and that a new Children and Families government agency to oversee the issue would be set up in April.

Japan is the third-most-expensive country globally to raise a child, according to YuWa Population Research, behind only China and South Korea, countries also seeing shrinking populations in worrying signs for the global economy.

Other countries are also coming to grips with ageing and shrinking populations. Last week China reported that its population dropped in 2022 for the first time in 60 years.