Japanese Economic Stagnation

Japanese economic stagnation refers to a prolonged period of minimal or no growth in Japan’s economy since the early 1990s. It began after an asset price bubble burst, leading to falling stock and real estate prices. Factors include an aging population, low birth rates, high government debt, and deflation—where prices slow or decline, discouraging spending and investment. Despite government efforts like monetary easing and fiscal stimulus, growth remains sluggish. This stagnation affects employment, wages, and overall economic vitality, posing challenges for policymakers aiming to revitalize the economy and ensure sustained prosperity.