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Why humanity will shrink far sooner than we thought

Joeri Schasfoort challenges a foundational pillar of modern economic planning: the United Nations' timeline for peak human population. While the UN projects a plateau by 2083, Schasfoort argues that a convergence of data errors and demographic realities suggests humanity could begin shrinking as early as 2055. This isn't just a statistical adjustment; it is a warning that pension crises and debt limits will arrive two decades sooner than global markets are currently pricing in.

The Data Gap in Developing Nations

The core of Schasfoort's argument rests on the idea that the UN is systematically overestimating birth rates in key developing economies. He points to Colombia, where official government records show a 30% lower birth rate than UN estimates for years. "The UN has roughly overestimated the total number of Colombians born by 30% for years," Schasfoort notes, highlighting a pattern that extends to Turkey, Egypt, and Mexico. The problem, he explains, is not necessarily bad methodology but a failure to recognize that countries classified as having "almost complete vital registration systems" are actually missing massive numbers of births.

Why humanity will shrink far sooner than we thought

This evidence is compelling because it exposes a blind spot in how global data is aggregated. If medium-sized nations are miscounted, the error compounds exponentially when applied to China, which accounts for nearly one-sixth of the global population. Schasfoort writes, "Even tiny errors in Chinese birth statistics can shift global forecasts by tens of millions of people." The implication is stark: the baseline data for the entire world's demographic future may be inflated.

The Incentive to Inflate in China

The situation in China presents a more deliberate distortion. Schasfoort cites demographer Yi Fukian, who argues that local governments have a financial incentive to inflate birth numbers to secure more funding from Beijing. "More babies, after all, means more money from Beijing for schools, pensions, and poverty relief," Schasfoort explains. The discrepancy is visible in the gap between local reports and national census data, where a 12% difference appeared in the year 2000.

This structural incentive suggests that official Chinese birth figures are not just inaccurate but actively fabricated to make policy look successful. Schasfoort illustrates this with the 2016 two-child policy, where reported births jumped 27% while vaccine and school enrollment data showed no corresponding rise. "Some provinces like Shandang and Zang reported increases of 56 and 75% respectively," he writes, yet the physical evidence of those babies simply wasn't there. Critics might note that the Chinese government has recently tightened data collection, but as Schasfoort points out, the historical precedent of fabrication makes current UN projections inherently risky.

China's official data are amongst the most uncertain of all and some demographers believe that the distortions here could dwarf everything else.

The Myth of the Fertility Rebound

Perhaps the most dangerous assumption in current forecasting is the belief that fertility rates will naturally bounce back. The UN relies on a three-phase model where fertility dips during development and then recovers as societies adapt with better childcare and work-life balance. Schasfoort finds this optimistic for the current moment, particularly in places like South Korea, where fertility has plummeted to 0.7 children per woman. "The UN thinks it will start bouncing back next year," he observes, adding that this same rebound is predicted for Europe and China simultaneously. "That seems absurd, doesn't it?"

The UN's track record on specific country forecasts supports Schasfoort's skepticism. While their global totals have been historically accurate, they have consistently failed to predict the speed of decline in aging nations. "Take South Korea again. For years, the UN has predicted that fertility would stabilize or start rising. It never did," Schasfoort writes. Other forecasting bodies, such as the Institute for Health Metrics and Evaluation, already place the peak closer to 2064, and the Vienna-based IIASA suggests it could have happened as early as 2018. The consensus is shifting, and the window for economic adaptation is closing faster than anticipated.

Economic Implications and the Bottom Line

The economic consequences of an earlier peak are severe. Schasfoort warns that the "Japanification" of major economies—characterized by slower growth and higher debt—will hit Europe and East Asia sooner than expected. While India and Africa may still enjoy a "demographic dividend" with a growing workforce, the timeline for their ascent is compressed. "The global population crisis will just come sooner everywhere and will likely be more severe than we previously thought," Schasfoort concludes.

This argument is strongest in its synthesis of disparate data points, linking local corruption in China with statistical gaps in Colombia to form a coherent picture of global overestimation. However, the analysis assumes that fertility trends will continue their current downward trajectory without a sudden, unforeseen cultural or policy shift that could reverse the decline. Regardless, the risk of being wrong on the side of optimism is now far greater than the risk of being too pessimistic.

Bottom Line

Schasfoort makes a persuasive case that the UN's 2083 peak population date is dangerously optimistic, likely due to inflated birth statistics in China and a flawed assumption that fertility will rebound in aging societies. The strongest part of his argument is the evidence of systematic data fabrication, which undermines the reliability of all downstream economic models. The biggest vulnerability remains the inherent unpredictability of human behavior, but the cost of ignoring these early warning signs could be a global pension and debt crisis arriving two decades ahead of schedule.

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Why humanity will shrink far sooner than we thought

by Joeri Schasfoort · Money & Macro · Watch video

The UN predicts that we will reach peak humanity by 2083. But now more and more economists like University of Pennsylvania professor Kaz Fernandez Verde are saying that this UN prediction is actually far too optimistic. Instead, he argues that >> so 2055 will be the year of peak humanity in size and we will start going down. If this is true, economies around the world will have to deal with pension crisis, reduced economic growth, and potential government debt crisis far faster than we thought.

So why are the UN predictions that everyone including me has been using so far so wrong? And what exactly does that mean for the global economy? As always on Money Macro, we have done a deep dive into the relevant economic research. Taken the best arguments plus supporting evidence and summarized them for you.

Starting with argument number one, far fewer people are born today than the UN thinks. Have a look at this graph from Colombia, a country for which Professor Villa recently made the case that the UN is getting current birth rates terribly wrong. This line shows historical UN estimates for how many new Colombians are born in each year. Meanwhile, this line shows the actual births reported by Colombia's government.

As you can see, the UN has roughly overestimated the total number of Colombians born by 30% for years. That's a big number. And we see similar gaps for other large developing countries like Turkey, Egypt, and more recently Mexico. Mexico's case, the trend even flipped.

For years, the UN underestimated births, but in the last couple of years, it started to overestimate them there as well. So, why is the UN getting the total number of births for these major countries so wrong? The problem is not that UN researchers are using a bad methodology. You see, in many poor nations, governments genuinely do not have a good idea how many people are actually born.

For example, in ultra poor, unstable countries like South Sudan, Yemen, and Madagascar, of course, the government does not have the capacity to count all births. So, it makes sense that the UN makes an estimate of how good the government is at counting baby and then adds to that a number of babies to account for these inaccuracies. The real problem according to Villa Verde is that the UN itself classifies both ...