Shrinking and threatened the prosperity of Japan knocked out of the ranks of prosperous nations in 2050, along with the increase among the elderly, which makes productivity decreases so that the economy collapsed
Study of think tanks, 21st Century Public Policy, warned that the decline in labor force due to the low birth rate, decline in savings and investments.
Institution think tank associated with the Keidanren business federation said that the economy has narrowed from the year 2030, although the level of productivity recovers.
Japan’s GDP to be overtaken by India in 2014, and lost their existence in 2050. In that year the Japanese economy only one-sixth of China and the United States, and one-third of the Indian economy.
Before China was taken over last year, Japan’s economy is second only to the United States.
In the most pessimistic scenario, the economy will continue to contract due to a deteriorating fiscal conditions, and the GDP shrinking to the point where Japan does not classified in the world’s top economies.
But the think tank said the Japanese economy will be able to grow if it boosts the amount of labor force.
If it is successful then by 2040, Japan was still in fourth place in the world.
Japan’s economy raced in 1970 and the 1980s. But the stock and property market slump in two decades make the Japanese economy weakened.
Years of anaemic growth and unsuccessful pump priming have burdened Japan with public debt equivalent to twice GDP, with analysts warning only higher tax revenues or spending cuts can bridge the gap.
Prime Minister Yoshihiko Noda has worked to push through a bill to raise sales tax from the present 5 percent to 10 percent by 2015. But even with this boost, the report warned, the nation’s public debt could swell to nearly 600 percent of GDP by 2050 without further curative measures.
The birth rate in Japan is very low and the government did not open the doors to immigrants