Is Japan caught in an upper income trap? (Naohiro Yashiro, Showa Women’s University, East Asia Forum)

Japan’s economy is stagnant and has been so for quite some time now. It looks as if Japan is now in the ‘upper income trap’. In comparison with its 10 per cent real GDP growth rate between 1950 and 1960 and 4 per cent growth rate between 1970 and 1980, Japan has only managed an average growth rate of 1 per cent since the early 1990s. This declining trend has been driven by Japan’s considerable demographic challenges.

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