At the same time, in terms of labor productivity growth, Japan still showed a comparable performance to the US, although Japan had lost a superior performance in the 1980s (Chart 8). Obviously, the differences between Real GDP growth and labor productivity growth reflect the declines in the workforce in Japan.
In any event, in extracting implications from Japan’s “lost decade”, it is essential to analyze not only short-term aggregate demand movements but also changes in the potential growth trend, which is determined by productivity growth and demographic changes. III. Major and common challenges for advanced countries  Then, what should we consider in mapping out near-term economic policies in each country?