“Japan’s population shrank by its largest amount on record in 2014. Roughly 1.001 million people were born and 1.269 million people died last year, leaving the country with 268,000 fewer people overall.
Japan’s declining population has a powerful impact on its economic situation, and not for the better. An aging population leaves the country with fewer workers and more dependents. And conventional wisdom says aging leads to slower economic growth and more deflationary forces, both of which make it more difficult for Japan to chip away at the substantial debt burden from its economic crisis at the beginning of the 1990s.”