Japan shows how to defeat secular stagnation
The Land of the Rising Sun’s per capita GDP is the envy of the Group of Seven and a gift to global investors.
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Japan had the most significant per capita increase in GDP between 2013 and 2022 in local currency terms.
PHOTO: AFP
Matthew A Winkler
As if out of nowhere, everyone’s archetype of secular stagnation is leading the Group of Seven (G-7) developed economies in life expectancy, per capita growth and, for the first time in decades, an end to the deflation that had oppressed chief executives and global investors alike. And if that is not enough, this economic juggernaut – better known as Japan – is also providing the biggest dollar-denominated stock market returns anywhere in the world.
The Land of the Rising Sun experienced its largest decline in population in 2022, or more than 500,000 annually to 125.4 million, and residents are living longer than 84 years on average (fourth among 240 countries). And yet, the world’s No. 3 economy had the most significant per capita increase in gross domestic product (GDP) between 2013 and 2022 in local currency terms.