Commentary
China released its latest population figure for 2022, recording a year-over-year decline, which had not been seen since the Great Leap Forward in the early 1960s. Population growth is important for economic growth because all outputs are produced by labor and capital (non-labor), the two standard input factors. Given a production function in terms of these factors, its change over time (equivalent to roughly GDP growth) will be proportional to the change of these input factors over time. Part of the latter is population growth.
