Challenges arising from population aging Let me explain how serious the demographic change is in Japan. As is shown in Chart 6, Japan’s population is expected to start declining in 2007. Moreover, the share of elderly people of 65 and older has been increasing since around 1990 and is now approaching 20%.
In 2050, the share is expected to reach 36%, the second highest in the world after Spain. Not only is the share among the highest, but the rising pace of the share is unparalleled.