The Reasons Japan’s Population is Shrinking
The aging of Japanese society is unprecedented. Here are the reasons why.
According to the Statistics Bureau of Japan, 28.8% of Japan’s population was over the age of 65 in 2020.
This presents a dire economic outlook for the world’s third largest economy as more resources are pooled towards aged care, while the country’s tax base continues to weaken.
Here are the reasons why:
1. High Life Expectancy
Japan has impressively high life expectancy rates. According to the Ministry of Health, Labor and Welfare, in 2020 the life expectancy was 87.7 years for women and 81.6 years for men.
This high life expectancy can be attributed to:
- having some of the most advanced medical technology in the world
- years of peace and prosperity
- Japan’s healthy diet
While high life expectancy is not a bad thing, coupled with a declining fertility rate, it poses a serious risk for the country’s future.
2. Declining Fertility Rate
For a population to remain stable, a fertility rate of 2.1 is required (referred to as the “replacement rate”)…
