The Health, Labor and Welfare Ministry said approximately 1.121 million babies were born over the last 12 months -- a decline of about 33,000 from 2002.

Over the same period, around 1.025 million people died, up 43,000 from 2002.

As a result, the gap between the number of births and deaths -- an indicator of the nation's natural population increase -- was 96,000, dipping below 100,000 for the first time on record. The government started taking such demographic statistics in 1899.

The estimates underline a recent forecast issued by the health ministry that, due to the declining birthrate, Japan's population will decline after peaking in 2006.

The year saw an estimated 737,000 marriages, down by 20,000 from 2002 and the second consecutive year of decline.