The Japan News :
Since the bursting of the bubble economy Japan has failed to invest in growth, and now the country’s nominal GDP has been overtaken by Germany and fallen to fourth place globally. If Japan hopes to keep up, it will have to break out of its long deflationary period and work to boost production efficiency.
Impact of weak yen
Chief Cabinet Secretary Yoshimasa Hayashi offered his explanation for why Japan’s nominal GDP fell to fourth place at a press conference on Thursday. “Companies suppressed wages and investment, which is the source of growth, so they could protect current profits. As a result, consumption stagnated. Prices were low and there was not much growth,” he said.