Japan is dealing with what economists call a “demographic time bomb.” The country has coped with this in creative and sometimes extreme ways. Japan is dealing with what economists call a “demographic time bomb.”
Through a vicious cycle of low fertility and low consumer spending, the country’s economy has gradually shrunk over the last 20 years.
Japan has coped with this demographic time bomb in creative and sometimes extreme ways. But the reputation Japan still maintains as a tech leader with a booming economy belies the daily reality for many citizens.
Here are a handful of myths that put the demographic time bomb in perspective.
MYTH: Japan is an economic powerhouse.
Japan’s GDP is the third-largest in the world, at nearly $5 trillion. But its national debt is more than twice that, at $10.5 trillion.
Tech: 6 myths about Japan that put its ‘demographic time bomb’ in perspective
