Japan’s population is shrinking at an accelerating rate, but the nationalist prime minister is making it harder for foreigners to live there
The latest five-year census showed the number of Japanese nationals declined by 3.5% to 119.1 million in 2025, following a 1.4% drop in the 2020 count.
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# Japan's Demographic Crisis Threatens Economic Growth Despite Immigration Restrictions Japan's population of nationals contracted 3.5% to 119.1 million over five years—accelerating from the prior 1.4% decline—which will likely pressure the Bank of Japan's inflation targets and reduce domestic consumer spending and labor supply for major Japanese exporters like Toyota and Sony. The government's restrictive immigration policies amid this demographic collapse create a significant headwind for economic growth, potentially forcing the BoJ to maintain accommodative monetary policy longer than peer central banks and weighing on the
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