Japan: From economic driving force to decline - what happened?

Japan: From economic driving force to decline - what happened?

According to a report by www.derstandard.de,

Developments in the Japanese economy since the late 1980s show how quickly economic pioneering positions can change. As bubbles burst in the stock and real estate markets, Japan fell into a long-term economic recession and was overtaken by both China and Germany in the ranking of the largest economies.

The economic recession in Germany and the long-term consequences of an aging society that have hindered Japan's growth could also have global implications. With Germany now the third largest economy, this will have an impact on global financial markets, trade relations and investments.

The aging society in Japan has led to a decline in the workforce and an increase in social costs. This could also lead to similar problems in Germany, which could affect the country's economic performance in the long term.

The rise of Germany as the third largest economy could also influence the dynamics in the European Union, as Germany plays a dominant role in the EU.

Overall, these developments show how important it is to pay attention to demographic change and its economic impact in developed countries. The financial industry will monitor these developments closely and may adapt its strategies to respond to the new global economic power shifts.