The Japanese government believe that there population will shrink by one third by 2060 and that by the same date over 40% of the population will be old dependents. The declining and ageing population is blamed on falling birth and fertility rates and rising life expectancy - Japan already has the highest life expectancy in the world, but this is expected to go up. Ageing and declining populations can cause a lot of problems including: healthcare costs, pension costs, worker shortages and falling tax revenue.
http://www.bbc.co.uk/news/world-asia-16787538
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