China is the world's most populous country, and its economy is second only to the United States. But despite these indicators of a prosperous future, China has several looming problems ahead. A stagnant economy, a shrinking workforce, and a growing elderly population. So is this sleeping giant on the verge of a dangerous economic collapse? What's at stake for China? Since the 1970s, China has instituted a one-child only policy. This was to help cope with poverty problems caused by overpopulation. However, a side effect is that today, there are fewer young people to take care of a massive aging generation. And Shanghai, one expert believes that in five years, a third of the city's residents will be over the age of 59. With a smaller working age population, the workforce is slowly shrinking. Because this economy has also suffered in recent years, in 2008, their port in the global recession was coupled with a massive earthquake. In response to those crises, the government instituted federal work programs and housing projects. Those stimulated growth, but also came with their own problems. Today, the surplus of housing is causing property prices to drop, and the housing market is, quote, comatose. This is especially dangerous as some economists estimate that China's real estate industry accounts for about 20% of their national GDP. Additionally, the Chinese banking system is in need of some policy changes, and is often secretive. According to the International Monetary Fund, off-balance sheet activities and informal credit markets have made China's financial sector vulnerable. The report called for increased oversight and transparency into the shadow banking world. The Brookings Institution reported that in 2013, shadow banking accounted for around 43% of China's GDP. The country's growth has slowed to its weakest point in 24 years, 7.4% in 2014. Consumer confidence is weak, and municipal debts remain dangerously high, according to experts. Currently, one American consulting firm estimated that China's debt to GDP ratio is that 282 percent. Many agree that China is in danger of a major economic setback. To note that in order for their recovery to be less painful, their economic lows must be addressed as soon as possible. Despite their status as a wealthy superpower, China will face major unavoidable money problems in the coming years. China isn't the only country with a lot of debt. To learn about the situation in the United States, take a look at our video here. The cost more money to run the country than the country currently earns in taxes. This is called a budget deficit. The US deficit for this year is more than $500 billion.