Japan could fall out of the league of developed nations by 2050 as a shrinking and greying population as well as slowing productivity make its economy contract, a think tank has warned. -- PHOTO: BLOOMBERG
TOKYO (AFP) - Japan could fall out of the league of developed nations by 2050 as a shrinking and greying population as well as slowing productivity make its economy contract, a think-tank has warned.
The 21st Century Public Policy Institute said a dwindling workforce, caused by a chronic low birthrate, will combine with lower savings and shriveling investment to drag the once mighty economy down.
The think-tank, linked to Japan's powerful Keidanren business federation, said the economy will start getting smaller at some point in the 2030s, even if productivity recovers to the average level of the world's top economies.
Japan's GDP will fall behind India in 2014 and by 2050 it will lose its economic presence 'significantly', dipping to be only one sixth that of China and the United States and one third that of India, said the report.
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