Japan Is Facing an Unprecedented Population Meltdown
Demographics are also a key driver of the national budget. Japan has run hefty national budget deficits for the last quarter century. The country’s working age population peaked in the late 1990s, and has been falling since. With a decline in its workforce, Japan’s GDP growth also declined, and this appears in turn to have led to lower domestic interest rates. At the same time, Japan’s elderly population has been soaring.