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Key points

Three Key Points Analysis of the Paper: Japanese economy is faced with a number of economical challenges such asdeflation, increased government debt and decreased productivity. These are the three most important adverse outcomes that have targeted the economic growth of the country. However, it is important to understand that the major reasons for this economic decline. These include:
1- Low birth rate
2- Shrinking young population
3- Increased ageing population.
The above mentioned issues related to population and changes in the age structure of the population have directly affected the Japan’s overall economic and productivity growth. Japan is in need to review and alter its policies to avoid a severe economic decline, but alteration and successful implementation of these changes is difficult. Japan should focus on empowering women, enabling them to work and contribute their share in the betterment of the society and uplifting the falling economy. In addition, the policy should include its complete focus on motivating people for the immigration. We know that Japan is an industrialized country and a first one to observe a clear yet negative shift in its economical structure. Japan is entering in an extraordinary and unpredictable phase of its economic performance. As a result, it is clear to observe an increased stress on the social and political system of the country due to gradually declining economy and low productivity growth.
List of References:
Lincoln, J. E., (2011). ‘ Japan’s Long-Term Economic Challenges.” Comparative Economic Studies, vol. 53, p. p. 455-474.

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