The Lost Decades is a lengthy period of economic stagnation in Japan precipitated by the asset price bubble's collapse beginning in 1990. The singular term Lost Decade (失われた10年, Ushinawareta Jūnen) originally referred to the 1990s,[1] but the 2000s (Lost 20 Years, 失われた20年)[2] and the 2010s (Lost 30 Years, 失われた30年)[3][4][5] have been included by commentators as the phenomenon continued.[4]
Broadly impacting the entire Japanese economy, over the period of 1995 to 2007, the country's GDP fell from $5.33 trillion to $4.36 trillion in nominal terms,[7]real wages fell around 5%,[8] while the country experienced a stagnant price level.[9] In 2024, the country entered a technical recession which caused it to lose its position as the world’s third largest economy to Germany.[10][11][12] The real effective exchange rate also hit a record low due to the recession[13] and is expected to fall even further as the Japanese yen become an increasingly weak currency.[14][15][16]
While there is some debate on the extent and measurement of Japan's setbacks,[17][18] the economic effect of the Lost Decades is well established, and Japanese policymakers continue to grapple with its consequences.
^円の実力、なぜ過去最低水準 金利差だけではない日本経済の「弱さ」:朝日新聞デジタル [Why is the yen's strength at its lowest level ever? The weakness of the Japanese economy is not just due to the interest rate differential]. Asahi Shimbun Digital (in Japanese). 2023-12-25. Archived from the original on 2024-01-30. Retrieved 2024-04-13.
^"日本円が「ジャンク通貨」に? ロシアや新興国通貨よりも価値下落:朝日新聞デジタル" [Will the Japanese yen become a "junk currency"? Decrease in value compared to Russian and emerging market currencies]. 朝日新聞デジタル (in Japanese). 2022-09-02. Retrieved 2023-11-15.
^"円安で日本円は"ジャンク通貨"になった 海外両替所に日本円の表示がないことも" [The depreciation of the yen has turned the Japanese yen into a "junk currency". Overseas currency exchange offices may not display Japanese yen.]. マネーポストWEB (in Japanese). 2022-08-25. Retrieved 2023-11-15.
^"ドル円相場、「円弱」1ドル150円 理由は金利差だけじゃない" ["Weak yen" at 150 yen to the dollar The reason is not just the interest rate difference]. 日本経済新聞 (in Japanese). 2023-11-13. Retrieved 2023-11-15.