Why Japan’s Economy Faces Challenges #japan
japan’s economy is a puzzle Let’s solve it in under a minute Grab your calculators and let’s make sense of it all in under a minute First up the asset bubble In the 80s Japan had a real estate and stock market party Then in the ’90s it crashed hard Welcome to the lost decade which actually lasted about 30 years Next problem deflation Prices keep falling so people hold off on buying hoping for cheaper deals later Sounds nice but it tanks company profits shrinks paychecks and keeps growth stuck in reverse Then there’s demographics Nearly a third of Japan’s population is over 65 and the birth rate not great Fewer young workers means less innovation and more spending on healthare and pensions Also Japan’s famous work culture it can block fresh ideas and startups making it tough to keep up with tech giants from Korea China and the US Toss in sky-high government debt and years of wild central bank experiments and you’ve got a recipe for stubborn stagnation But hey Japan’s still a tech powerhouse with amazing infrastructure just weighed down by some big gnarly challenges
Why Japan’s Economy Faces Challenges #japan
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