However, comparing the average real GDP growth rate per capita over the past ten years, Japan’s growth rate is almost the same as other developed countries. Moreover, Japan is highest in terms of real GDP growth rate per working-age population (Chart 13).
As indicated by these figures, the most significant challenge confronting Japan is how to adjust to a rapid demographic change that is unprecedented in developed countries (Chart 14). To a significant extent, the decline in growth rates and deterioration in fiscal conditions are attributable to a failure to adjust to the rapid change in demographics.