Bhutan Battles "Existential" Population Crisis with New Birth Initiative

THIMPHU — The Himalayan kingdom of Bhutan is confronting what Prime Minister Tshering Tobgay recently termed an "existential" demographic crisis. With the national fertility rate dropping to around 1.8 children per woman—well below the replacement level—the government has launched an aggressive new financial incentive program to encourage larger families.  The "Third Child Plus" initiative, rolled out in mid-2026, offers families a monthly payment of $105 for their third and any subsequent children until they reach the age of three. The policy is a direct response to a 27% drop in the births of third children since 2020. Compounding the falling birth rate is a significant youth exodus. As of mid-2026, over 71,000 Bhutanese—nearly 10% of the country's population—are living abroad, with more than half migrating to Australia for education and economic opportunities. While the resulting remittances boost the economy, officials warn that losing prime working-age cit...