By Murray Hunter
FOR the first time in human history, global fertility appears to have fallen below the replacement level, setting the stage for an eventual decline in the world’s population.
A recent paper, Terra Incognita: The Economics of a Shrinking World, by University of Pennsylvania economics professor Jesús Fernández-Villaverde and Northwestern University researcher Patrick Norrick, estimates that the global fertility rate now stands at no higher than 2.19 children per woman, just under the roughly 2.2 needed to keep population stable over the long term.
“As of 2026, humanity is likely to be below replacement level: we are having fewer births than we need to keep population constant in the long run… this has never happened before in our history as a species, not even during wars or pandemics,” the authors write.
Their analysis of data from 236 countries and territories shows fertility declining in 219 of them, with little sign of the trend bottoming out.
While the global population continues to grow for now—thanks to the large cohorts still in their childbearing years- the researchers project it will peak around 9 billion in 2056 before beginning a sustained decline.
This shift carries profound implications.
On one hand, a smaller future population could ease pressure on natural resources and help mitigate climate change by reducing overall consumption and emissions over the long term.
Fewer people would mean less demand for energy, food, water, and land, potentially offering an unintended demographic contribution to environmental sustainability.
Yet the nearer-term challenges are significant.
Many nations already face shrinking workforces and rapidly ageing societies. Smaller younger generations will struggle to support larger elderly populations, straining pension systems, healthcare, and public finances while slowing economic growth.
In the United States, for instance, the study suggests that even with solid productivity gains, a contracting labor force could push long-term GDP growth noticeably lower.
Similar pressures are emerging across East Asia, Europe, Latin America, and parts of the Middle East, where fertility rates in countries such as Thailand, Colombia, Iran, and Brazil have already dropped well below replacement.
New technologies offer partial solutions. Advances in artificial intelligence and robotics are poised to automate many tasks, helping offset labour shortages in manufacturing, agriculture, elder care, logistics, and services.
Automation could maintain or even boost productivity in economies with fewer workers, reshaping industries and reducing dependence on large workforces.
Still, technology alone will not fully bridge the gaps.
Demographic imbalances are expected to drive increased international migration over the coming century.
Countries with ageing populations and labour shortfalls are likely to compete more intensely for younger workers from regions that still have higher fertility, particularly parts of sub-Saharan Africa.
This could reshape global labour markets, alter political debates around immigration, and create both economic opportunities and social tensions.
The causes of the fertility decline remain complex—ranging from rising housing and childcare costs and economic insecurity to widespread contraception and shifting social norms, with no single factor fully explaining the near-universal trend.
Unlike past population setbacks caused by war or disease, this one stems from sustained individual choices across diverse societies.
Humanity is entering uncharted demographic territory.
A smaller global population may ultimately benefit the planet’s ecosystems and climate, but the transition will require careful management of labour shortages, ageing societies, technological adaptation, and migration flows.
How nations respond in the coming decades will shape the economic and social landscape of the 21st century and beyond. – August 27, 2026
