From the 1960s to the 1980s, overall real economic growth was extremely large: a 10% average in the 1960s, a 5% average in the 1970s and a 4% average in the 1980s.
By the end of said period, Japan had moved into being a high-wage economy.

Growth slowed markedly in the late 1990s also termed the Lost Decade after the collapse of the Japanese asset price bubble.
As a consequence Japan ran massive budget deficits (added trillions in Yen to Japanese financial system) to finance large public works programs.

By 1998, Japan's public works projects still could not stimulate demand enough to end the economy's stagnation.
In desperation, the Japanese government undertook "structural reform" policies intended to wring speculative excesses from the stock and real estate markets.
Unfortunately, these policies led Japan into deflation on numerous occasions between 1999 and 2004.
The Bank of Japan used quantitative easing to expand the country's money supply in order to raise expectations of inflation and spur economic growth.
Initially, the policy failed to induce any growth, but it eventually began to affect inflationary expectations.
By late 2005, the economy finally began what seems to be a sustained recovery.
GDP growth for that year was 2.8%, with an annualized fourth quarter expansion of 5.5%, surpassing the growth rates of the US and European Union during the same period.
Unlike previous recovery trends, domestic consumption has been the dominant factor of growth.

Despite having interest rates down near zero for a long period of time, the quantitative easing strategy did not succeed in stopping price deflation.
This led some economists, such as Paul Krugman, and some Japanese politicians, to advocate the generation of higher inflation expectations.
In July 2006, the zero-rate policy was ended.
In 2008, the Japanese Central Bank still had the lowest interest rates in the developed world, but deflation had still not been eliminated and the Nikkei 225 has fallen over approximately 50% (between June 2007 and December 2008).
 However, on 5 April 2013, the Bank of Japan announced that it would be purchasing 60–70 trillion yen in bonds and securities in an attempt to eliminate deflation by doubling the money supply in Japan over the course of two years.
 Markets around the world have responded positively to the government's current proactive policies, with the Nikkei 225 adding more than 42% since November 2012.
The Economist has suggested that improvements to bankruptcy law, land transfer law, and tax laws will aid Japan's economy.
In recent years, Japan has been the top export market for almost 15 trading nations worldwide.

In January 2020, Prime Minister Shinzo Abe announced that Japan's coronavirus pandemic, which also forced a national state of emergency, gave the nation its worst economic crisis since the end of World War II.
Jun Saito of the Japan Center for Economic Research stated that the pandemic delivered the "final blow" to Japan's long fledging economy, which also resumed slow growth in 2018.

Less than a quarter of Japanese people expect living conditions to improve in the coming decades.
From the 1960s to the 1980s, overall real economic growth was extremely large: a 10% average in the 1960s, a 5% average in the 1970s and a 4% average in the 1980s. By the end of said period, Japan had moved into being a high-wage economy.
Growth slowed markedly in the late 1990s also termed the Lost Decade after the collapse of the Japanese asset price bubble. As a consequence Japan ran massive budget deficits (added trillions in Yen to Japanese financial system) to finance large public works programs.
By 1998, Japan's public works projects still could not stimulate demand enough to end the economy's stagnation. In desperation, the Japanese government undertook "structural reform" policies intended to wring speculative excesses from the stock and real estate markets. Unfortunately, these policies led Japan into deflation on numerous occasions between 1999 and 2004. The Bank of Japan used quantitative easing to expand the country's money supply in order to raise expectations of inflation and spur economic growth. Initially, the policy failed to induce any growth, but it eventually began to affect inflationary expectations. By late 2005, the economy finally began what seems to be a sustained recovery. GDP growth for that year was 2.8%, with an annualized fourth quarter expansion of 5.5%, surpassing the growth rates of the US and European Union during the same period. Unlike previous recovery trends, domestic consumption has been the dominant factor of growth.
Despite having interest rates down near zero for a long period of time, the quantitative easing strategy did not succeed in stopping price deflation. This led some economists, such as Paul Krugman, and some Japanese politicians, to advocate the generation of higher inflation expectations. In July 2006, the zero-rate policy was ended. In 2008, the Japanese Central Bank still had the lowest interest rates in the developed world, but deflation had still not been eliminated and the Nikkei 225 has fallen over approximately 50% (between June 2007 and December 2008).  However, on 5 April 2013, the Bank of Japan announced that it would be purchasing 60–70 trillion yen in bonds and securities in an attempt to eliminate deflation by doubling the money supply in Japan over the course of two years.  Markets around the world have responded positively to the government's current proactive policies, with the Nikkei 225 adding more than 42% since November 2012. The Economist has suggested that improvements to bankruptcy law, land transfer law, and tax laws will aid Japan's economy. In recent years, Japan has been the top export market for almost 15 trading nations worldwide.
In January 2020, Prime Minister Shinzo Abe announced that Japan's coronavirus pandemic, which also forced a national state of emergency, gave the nation its worst economic crisis since the end of World War II. Jun Saito of the Japan Center for Economic Research stated that the pandemic delivered the "final blow" to Japan's long fledging economy, which also resumed slow growth in 2018.
Less than a quarter of Japanese people expect living conditions to improve in the coming decades.
Economy of Japan