This could be a major factor in why Japanese economy has been moribund for 2 decades. Population growth is an economic stimulant. Population decline is recessionary.
Japan's reasons are mostly economic. Children are expensive; and the overworked Japanese don't have enough free time to care for their own children.
China is facing the same problem with a fast aging population.
http://www.marketplace.org/2016/04/18/world/babies Quote: Japan’s population is shrinking – fast. Plummeting birthrates are a larger problem faced by countries around the world, including Italy, Germany and Greece. But Japan is at the forefront. Yu Korekawa, a senior researcher with the Population Dynamics Research department at Japan’s National Institute of Population and Social Security Research showed me a report on the future of the country’s population. It’s 42 pages long, but bottom line the numbers don’t look good -- Japan’s population is expected to shrink in half by the year 2082. In 2010, the country's population was 128 million. By 2082, that number is projected to drop to 64 million.
While we were talking, Korekawa continually opened and closed his eyes. He looked tired. “I have two babies. Two daughters – one is seven years old and the other one is just eight months,” he said. “My wife is working and it’s kind of very difficult,” he said.
According to Korekawa, Japan’s population decline is mainly due to economics. Real estate is expensive. And if you work long hours you have to pay for childcare. It’s simple math. People just can’t afford to have enough kids to keep up with population losses. The magic number is 2.1. That’s how many kids Japanese families need to have, on average, to keep up with population losses. Instead, they’re only having 1.4 kids.