Short answers, pulled from the story.
In 1995, Japan's share of the world's nominal GDP reached 17.8%, representing approximately 71% of the United States economy at that time. This figure marked the peak of a rapid economic ascent that began after the Second World War. The nation transformed from a war-torn archipelago into the world's second-largest economy by 1988.
The Japanese Economic Miracle began during the Korean War from 1950 to 1953 when Japan served as a major supply hub for U.S. forces. This period of high growth saw companies like Toyota, Sony, Hitachi, and Honda diversify from textiles to steel, shipbuilding, electronics, and automobiles. The strategy was jumpstarted by the demand from U.S. forces during the conflict.
When the asset price bubble burst in the early 1990s, it triggered a prolonged period of economic stagnation known as the Lost Decades. From 1995 to 2023, the country's GDP fell from $5.5 trillion to $4.2 trillion in nominal terms. The Bank of Japan implemented quantitative easing and a negative interest policy in 2016 to combat persistent deflationary pressure.
The population of Japan peaked at 128.5 million people in 2010 and has fallen to 122.6 million people in 2024. In 2024, the working-age population consisted of approximately 59.6% of the total population, which was the lowest rate among all OECD countries. Government projections from 2023 indicate the population will fall to 87 million by 2070.
In September 2013, Japan closed its last 50 nuclear power plants nationwide, causing the nation to be nuclear free. This decision followed the Fukushima Daiichi nuclear disaster in 2011 which caused a large desire to end the nuclear power program. The country has since opted to restart a few of its reactors.
The Bank of Japan ended its negative interest policy in March 2024 after achieving the 2% inflation target. This policy change occurred following increased international economic tension from events such as the 2022 Russian invasion of Ukraine. The Japanese yen hit a 37.5-year low of 161 yen per USD in July 2024 as a side effect of maintaining low rates.