Japan's economy is called stagnant because it is: GDP per capita stopped growing when the bubble burst in the 1990s. The other common theme for Japan is depopu

Japan's economy is called stagnant because it is: GDP per capita stopped growing when the bubble burst in the 1990s. The other common theme for Japan is depopulation. Japan is the oldest country in the world and will soon have 4 pensioners for every child. While this is not particularly noticeable in Tokyo (unless hunting for diapers and realizing that it's much easier to find ones for adults than for babies) large parts of the country are falling into disrepair, with rural villages depopulating entirely and smaller cities hollowing out fast. There are no obvious ways out of this, and Japan is not unique here, just ahead of the curve, as much of the Western world is already starting to hit the same demographic cliff.