Greece has suffered a huge drop in its birthrate because of austerity and unemployment, according to a senior government official.

The decline of more than 10% in the past four years is unparalleled in Europe and highlights the savage impact costcutting measures are having on the nation at the heart of the eurozone's financial woes.

"The falling fertility rate is a natural consequence of harsh austerity and record levels of unemployment, especially among the young," said Christina Papanikolaou, general secretary at the health ministry. "It is the mirror image of the 25% drop in our GDP since the start of the crisis," she said.

If further evidence was ever needed of the human cost of austerity, it is the effect budget-reducing policies are clearly having on childbirth in Greece. Figures released by the state-run Institute of Child Health show that the birthrate dropped from 118,302 in 2008 to 100,980 in 2012.

The health minister, Adonis Georgiadis, has attributed the decline squarely to the effect of the economic crisis on Greeks. "The problem of low fertility among the Greek population has grown continuously over the past two decades and worsened significantly, recently, as a result of the profound economic crisis the country is facing," he said, acknowledging that the number of stillbirths had also risen.

Mired in its sixth straight year of recession – the longest on record for an advanced western economy – Greece is in the midst of a public health disaster that according to doctors is worsening by the day.

Stringent cuts imposed on Athens in return for €240bn (£201bn) in rescue funds from the European Union, International Monetary Fund and European Central Bank, have resulted in the country's health budget being slashed by close to 40%. State funds for medication have been axed by almost half, from €5bn euro to just over €2bn, since the turmoil began.

Soaring joblessness – at nearly 28%, Greece has the highest unemployment rate in the eurozone – has also meant that growing numbers are no longer covered by free healthcare. The migration of thousands of private insurance holders to state-sponsored schemes has added to the strain.

"This is by far our biggest problem, the long-term unemployed no longer having access to health services because they are uninsured," said Papanikolaou, a physician herself. "We have had to make cuts in a very short period of time and some have been unfair. Pregnant women, for instance, no longer receive any kind of help or benefits."

With more than a fifth of the country's 11.4 million-strong population living under the poverty line, prenatal screening and other tests have been abandoned by prospective mothers who can no longer afford them. The decline in crucial medical examinations has fuelled fears that unemployed mothers are increasingly at risk of losing babies.

Earlier this year, the National School of Public Health said stillbirths had increased 21.5% from 3.31 per 1,000 in 2008 to 4.01 per 1,000 in 2011, attributing the rise to the growing rate of unemployment among women and the inability to access healthcare.

In a four-page analysis submitted to parliament, Adonis Georgiadis, the health minister, conceded that steps needed to be taken to ensure that the uninsured and financially vulnerable could be covered by insurance funds in prenatal screening.

The collapse of medical services has also affected Greece's large migrant community. At hospitals in Athens, which have been worst hit by the crisis, social workers say growing numbers of uninsured migrant mothers are failing to register children at birth for fear of being forced to pay delivery rates that at €600 (€1,200 for caesarians) few can afford.

"There is a growing population of undeclared children in Greece," said one social worker, who spoke only on condition of anonymity. "We have had cases of mothers fleeing hospitals with babes in arms in the middle of the night."