The report predicts China's population will peak in 2030 at 1.45 billion. It stood at around 1.37 billion in 2015.
Experts suggest that China's demographic crisis is in part a legacy of its attempt at population control through the one-child policy.
"In traditional Chinese culture, more children meant more prosperity, so the traditional household would hope for more children, but the one-child policy has played a role in affecting that," said Jieyu Liu, deputy director of the China Institute at London's School of Oriental and African Studies.
"This recent change to the one-child policy is mostly affecting urban populations," she said. "Since the 1980s, rural households were allowed to have a second child if their first was not a son. I think that after 36 years under the one-child policy, a lot of urban couples have already adapted into this one-child culture."
People with whom NBC News spoke this week on the streets of the Chinese capital expressed concern about the challenges facing parents in China.
Liu Wei, a 27-year-old Beijing resident and mother of a 14-month-old girl, said she was hesitating over having another baby.
"Raising a child is very expensive," she said. "My daughter just had an ordinary cold and we have already spent about $1400 for several days of treatment."
"If the couple are both working, no one would be there to take care of the baby at home," said Wu Fan, 31.
The shop-owner added: "Another reason is expensive housing, especially in Beijing. I plan to have our baby this year, but whether I will want to have a second child I am not sure yet."
All those with whom NBC News spoke on the streets of Beijing this week cited finances as a major obstacle to either having either a first or a second child. Concerns about China's notorious air pollution were also raised.
Experts also told NBC News that low levels of parental leave — four months for women and two weeks to nothing at all for men — along with a lack of affordable child care have diminished parents' desire for a second child.
So, can China's ruling Communist Party fix the problem? Experts suggested the government will struggle to effect meaningful change.
"The bottom line is that this is a very hard area to have any impact on. It's mostly about public attitudes," Professor Kerry Brown, director of the Lau China Institute at London's King's College, told NBC News.
"Trying to have campaigns encouraging people to have bigger families, it's very limited what you can do," he said. "The economic constraints on people in China are very great. It'll probably have a very limited impact, whatever the government does. It's about creating the right mood music as it were."
Despite China's baby deficit, the country has resisted calls from some activists to abandon restrictions on the number of children families can have.
The government's population plan says the environmental carrying capacity, food and water supplies, energy production and the ability of medical and public services to cope would be stretched by too great an increase in population.
For the time being, however, such concerns remain hypothetical.,
"The problem," Russell said, "is that many families are just not having many children — period."