Japan is home to the most devastating demographic crunch on the planet with an ageing population hanging over an already damaged economy.
The result, according to Barclays, is a yearly 1% hit to Japan’s GDP.
Note the declining amount of productive members of the Japanese population, and declining real GDP for those working. Here’s where Japan is really losing. As that smaller, and smaller section of the population has to support an ageing population, the costs add up, even if Japanese workers are becoming more productive.
Between now and 2020, Japan’s demographics are going to be a hindrance and not a help.