Once, Japan's GDP ranked second in the world, almost challenging the position of the United States. However, just as people thought this country would catch up with the United States, Japan's economy did not soar but stagnated.

Thirty years ago, Japan's per capita GDP was as high as $40,000, equivalent to 72 times that of China, but to this day, it remains at $40,000, seemingly unchanged.

Is Japan really out of the game? What is the current state of Japan's economic development?

Many people have probably heard of the term "bubble economy," which actually originated from Japan 30 years ago. In the 1970s, Japan's economy had already begun to grow rapidly at an annual rate of 10%, becoming the second-largest economy after the United States.

At that time, Japan's economic industry was mainly focused on automobiles and manufacturing.In 1973, the world experienced its first oil crisis, with crude oil prices soaring from $3 to $13. As the lifeblood of economic development, the oil crisis brought the U.S. economy to a standstill. Meanwhile, Japan seized the opportunity. Japanese cars, known for their practicality, fuel efficiency, and affordability, quickly gained popularity.

In 1960, Toyota's annual production was only 150,000 vehicles, but by the 1990s, it had reached nearly 4 million vehicles per year. Other high-quality and affordable Japanese products also swept across the globe, and the Japanese economy took off during this period.

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At its peak, Japan's per capita GDP reached $40,000, or even more. What a prosperous scene it was! The media described Japan as a country where almost everyone was a tycoon. Women would go out with designer handbags and high-end jewelry as the standard, and there were countless luxury cars on the streets. The entire nation was flourishing.

Wealthy Japanese were no longer satisfied with domestic consumption. Luxury stores in the United States were filled with Japanese tourists, and some countries even required their staff to learn Japanese to cater to these visitors.

Later, Mitsubishi spent $850 million to purchase 51% of the equity in the Rockefeller Center in the United States, and Sony acquired Columbia Pictures for $3.4 billion.

These big-ticket moves by Japan were proof of how developed their economy was at the time, during the bubble economy. However, such prosperity was temporary. As the bubble burst, Japan later fell into a series of crises, leading to decades of economic stagnation and no significant increase in per capita GDP.Back in the days when salaries in Shanghai were only a few hundred yuan, Japan's per capita income was already as high as 20,000 yuan. However, to this day, Japan's per capita income remains at 20,000 yuan, making it seem like Shanghai could surpass it with just a bit of effort.

As a result, some people have started to be pessimistic about Japan, questioning whether its economy is no longer viable. If this continues, will Japan keep regressing?

In fact, looking at Japan's per capita GDP, it has indeed remained unchanged for 30 years, as if it has been stuck in the same place.

Moreover, due to the current severe aging population in Japan, coupled with the low material desires of the younger generation, it has become increasingly difficult to stimulate the economy domestically.

Data indicates that Japan now ranks second in the world for aging population. Elderly people can be seen everywhere on the streets, and most of Japan's money is held by these seniors.

According to data released by the Bank of Japan for the year 2021, the average household savings in Japan are 16 million yen, which is equivalent to 720,000 yuan in Chinese currency. This is a significant amount, sufficient to prove that Japan's economic strength is still very strong. However, these elderly individuals have to worry about health and old age, and they also need to leave something for their children, so they are mostly reluctant to spend and keep their money in savings accounts.

Although the salaries of young people in Japan are also much higher than those in our country, due to the ongoing impact of the burst of the bubble economy, young people face immense living pressures with high mortgage costs. Therefore, life for young people in Japan is also very challenging. The younger generation in Japan has now become a generation of low consumption and low desires.The elderly do not spend money, and neither do the young, even though the Japanese government has introduced multiple policies to stimulate consumption, the domestic economy just cannot be stimulated. However, this does not mean that Japan's economy has collapsed, because when Japan's economy reaches its peak, it is extremely difficult to make further progress, and merely maintaining the existing level has already proven its strength.

Since the domestic economy in Japan cannot be stimulated, why can Japan still rank among the top in the world economy?

That is because Japan has long set its sights overseas, with most Japanese companies entering foreign markets. By the end of 2022, Japan's overseas economic volume had reached as high as 400 trillion yen, ranking first in the world.

Under these circumstances, although the domestic economy in Japan is stagnant, the overseas economy is booming, and Japan's economy can still maintain its basic position.

Over the years, although many people have been pessimistic about Japan, it cannot be denied that Japan's economic strength still ranks among the best in the world. Not to mention, Japanese products are now popular both domestically and internationally, and have almost penetrated every aspect of life.

For example, Japanese cars such as Honda and Toyota, a series of Japanese cars that we are all familiar with, have penetrated into thousands of households.

Japanese cosmetics, household goods, video cameras, electronic products, etc., are also at the world's leading level.Please provide the text you would like translated into English.