If the situation remains unaddressed and the labor force continues to decline, this will push down Japan’s annual economic growth rate in the 2010s by approximately 0.6 percentage point. This population issue is not unique to Japan. China’s labor force also started to decline in 2012, giving rise to a sense of crisis.
It was accompanied by a lack of rainfall, raging fires and receded rivers across the globe. This worsened the European energy crisis and global shortage of staple crops. The end of summer brings new discomfort. As the cold months approach, the key concerns are related to the security of energy supply high inflation and expected substantial slowdown in economic growth.