But the country has been falling down the demographic cliff after its baby boom ignited a surge of spending in the 1980s.
Look at Japan’s Spending Wave. This shows a 47-year lag from birth to peak spending:
Japan’s pre-World World II baby boom peaked in spending in 1989 at the height of the country’s economic prowess. The last of its baby boom peaked in spending in late 1996. It’s been in a coma economy ever since. And unfortunately, it only gets worse overtime.
While it’s hitting Japan hardest right now, this is a demographic reality all developed nations must face. And right now it’s a problem with no solution.