According to Daily Economic, the latest power rankings of Asia-Pacific countries released by an Australian think tank show that Japan has fallen to fourth place due to prolonged economic stagnation, being surpassed by the rapidly rising India. This marks the first time since the independent agency began its annual assessments in 2018 that Japan has dropped out of the top three in the Asia-Pacific power rankings, highlighting the severe challenges posed by low birth rates and an aging population.
According to the 2024 Asia Power Index (out of 100), the United States ranks first (81.7), followed by China (72.7), while Japan (38.9) has been overtaken by India (39.1). The assessment evaluates the comprehensive strength of 27 Asia-Pacific countries, ranked based on the weighted average of eight core indicators (derived from 131 sub-indicators).
The latest report indicates that Japan’s scores in the key areas of “economic capacity” and “economic relations” have decreased by 1.4 and 4.2 points, respectively. This trend has led to a gradual withdrawal of foreign investors from Japan’s technology sector, resulting in decreased productivity.
To improve its economy and enhance its power, Japan may need to implement more effective population policies targeting low birth rates and an aging population. This could involve encouraging childbirth, providing more parental support, improving housing security, optimizing retirement systems, and enhancing healthcare services. Additionally, the government should strengthen STEM (science, technology, engineering, and mathematics) education to cultivate more high-skilled talent to meet future economic needs. Furthermore, Japan should open its markets more, reduce trade barriers, and sign free trade agreements with other countries and regions to attract more foreign investment and promote export trade.
