Italy's population will shrink by almost 4 ​million by 2050, undermining the sustainability of its economy and welfare system as the proportion of elderly people increases, national statistics bureau ISTAT warned on Monday.In new ⁠demographic projections extending to 2080, ISTAT said Italy's resident population would fall to 55 million in 2050 from 58.9 million at the start of 2025, before dropping to 45.8 million by 2080.Prime Minister ⁠Giorgia Meloni said when ​she ⁠took office in 2022 that boosting the birth rate would be a government priority, but her efforts have ⁠produced scant results.Births have declined steadily since 2008 and ​fell ⁠last year to around 355,000, ‌the lowest number since Italy's unification in 1861, while deaths have risen as the population ages.ISTAT said annual births ‌would now remain broadly stable until 2030, ‌before falling to 335,000 by 2050.Deaths were projected to rise from about 652,000 last year to a peak of 869,000 in 2058 as ⁠Italy's large post-war baby boom generation reaches old age.Pope Leo shakes hands with Italian Prime Minister Giorgia Meloni during an event related to the Jubilee of Governments at the Vatican, June 21, 2025 (Reuters)The share of Italians aged 65 or over is expected to jump to 34.5% in 2050 from 24.7% in 2025, while the proportion of people of working age, defined as 15 to 64 years old, will fall to 55.3% from 63.4%.A ‌shrinking pool of workers and a surging number ​of pensioners will pose "new challenges to the economic ‌system and welfare," ISTAT noted.The demographic ⁠decline will be uneven across the country. Poorer southern ⁠Italy was forecast to suffer the steepest losses, with its population falling ‌from 19.7 million ​in 2025 to 16.7 million ‌in 2050, while central and ​northern regions will see a more modest decline.Meanwhile Italy said it will extend for a ⁠further 15 days a suspension of the ⁠European ​Union's border-free arrangements ⁠with Spain which ⁠was due ​to ⁠expire on ‌Monday, a government statement said.Rome ‌suspended the Schengen ‌arrangements with Madrid ⁠for one month on July 31, in response to a mass influx of ‌migrants ​into the Spanish ‌enclave ⁠of Ceuta ⁠from neighbouring Morocco.