Both Germany and Japan are famous for their strong export performance (and sustained trade surpluses). However, a critical challenge facing both countries is the rapid aging of the population and the relatively low birth rate. Longer-term, the demographic shift is likely to impact the level of saving and trade surpluses in both countries.
Japan is certainly an extraordinary case study. According to the Statistical Handbook of Japan 2009, the population of Japan peaked at 127.84 million in Dec 2004. The total population has been in decline ever since. The following figure (from Statistical Handbook of Japan 2009) highlights the challenges Japan faces as the ratio of retirees to working adults rises dramatically.
There are other developed countries (along with the biggest developing country - China) that face similar demographic challenges down the road. The following figures (source: Statistical Handbook of Japan 2009) highlight the challenges facing some key economies.
