Achieving sustainable growth while coping with a population decline calls for "Society 5.0," a super smart society where we can resolve various social challenges by incorporating the innovations of the fourth industrial revolution such as the "internet of things," big data, artificial intelligence, robots and the sharing economy into every industry and society.
Japan, in a sense, is far ahead of the rest of the world in realizing this new society, as it is compelled to do so. About 27.3 percent of Japan's 127 million people were aged 65 or higher in 2016, with the ratio expected to reach 38.4 percent by 2065, according to the Ministry of Internal Affairs and Communications.
The country's medical expenses are also expected to increase. The Ministry of Health, Labor and Welfare reported ¥41.3 trillion in medical costs in fiscal 2016, and they are expected to increase to ¥57.8 trillion by fiscal 2025, according to the National Federation of Health Insurance Societies.