Japan's Lost Decade

Japan's Lost Decade refers to a prolonged period of economic stagnation that began in the 1990s and lasted through the 2000s. After rapid growth in the 1980s, Japan faced a real estate and stock market bubble that burst, leading to significant declines in asset values. This resulted in banks struggling with bad loans, reduced consumer spending, and stagnant wages. With weak economic growth and deflation, Japan experienced a lack of innovation and investment, resulting in a prolonged economic malaise that impacted society and contributed to demographic challenges. This period reshaped Japan's economy and policies for years to come.