News from 2015-09-22 / KfW Research

Japan’s demographic millstone

Japan’s economic growth is on a bumpy ride. Growth momentum in the first half of 2015 was far from impressive. Looking beyond these short-term trends, Japan's main worry is its demographic problem. Population numbers will shrink dramatically over the next few decades and there will be a massive deterioration in the country's age structure. There is no magic bullet to mitigate the ensuing growth-dampening consequences. Instead, different adjustments will have to be made at the appropriate time.

Japan’s demographic millstone

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KfW Research

Current analyses, indicators and polls on business cycles and the economy, both in Germany and worldwide.