They got overtaken by Germany a country with 50% lower population and the gap is widening. Their gdp per capita is below some Eastern European countries and way below other developed countries that used to have similar gdp per capita. Yen’s devaluation is getting faster so in the future I don’t think Japan can even be called a first world country anymore. What exactly caused this? I know Japan has been in recession since the early 90s but this last few years seem to be extra harsh on Japan
In: Economics
In short.. Demographics. [https://www.populationpyramid.net/japan/2020/](https://www.populationpyramid.net/japan/2020/)
In the 1980s, people thought that Japanese economic might was going to take over, then they started hitting demographic friction. The growth stopped. Huge amounts of workers aged into retirement. They all need to paid pensions. They all need their healthcare.
The 1990s came around, and they faced an economic crises and resulted in a lost decade, which turned into a lost 20 years, which turned into a lost 30 years. They have been investing their production into other countries with better demographics (Thailand, Philippines, Vietnam, United States). They had to outsource because they did not have the local labor to sustain the industry. Its also why they have entered trade agreements with the US where they got a pretty shit deal, but it was still the best choice. Its also why they are buying their way into the US Military Alliance.
Japan is a sneak peak at what many other countries are going to be facing over the next 10-20 years, only Japan has been preparing for it for decades and demographic issues. China, South Korea, Germany, Russia, Italy, and a few other major global players are all going to be facing this fate soon.
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