When I participated in the Chatham House/Daiwa Research Institute conference on the post-Brexit Japan-United Kingdom relationship in Tokyo last month, it was my first visit back to Japan since my departure from Goldman Sachs almost six years ago. Prior to this trip, I had been visiting the country regularly since 1988, so it was helpful to see things from a slightly more detached perspective.
By and large, Japan in 2019 feels relatively stable when compared to other advanced economies. A decade from now, I would not be surprised if it continues to show the highest real (inflation-adjusted) per capita gross domestic product growth rate in the Group of Seven.
True, Japan's annual GDP growth has averaged just 1.1 percent so far this decade; but its declining population and shrinking workforce is already translating into stronger per capita performance. In fact, given the country's demographic challenges, it might well be outperforming its long-term growth potential.