Lessons from Japan's Economic Resilience

Japan's experience with economic challenges due to an aging population and low growth offers significant insights for Europe. While the term 'Japanification' is often associated with negative connotations, Japan's sustained economic growth over the past decade suggests a more nuanced perspective. Japan has effectively managed its fiscal policies, with government spending as a percentage of GDP remaining lower than that of many European nations. Understanding Japan's approaches, including their ability to maintain growth and control spending despite demographic shifts, could provide valuable lessons to European countries facing similar structural changes.