Japan’s Population Declines by Record in Challenge for Growth

From Bloomberg

"Japan faces a shrinking workforce as 2012 marks the first year the nation’s baby boomers are set to retire. The world’s third-largest economy has contracted three of the past four years and policy makers including Bank of Japan (8301) Governor Masaaki Shirakawa have said low growth is mainly the result of demographic changes.

“It will definitely will negatively affect long-term economic activity, especially potential growth numbers,” said Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo. “The generation of baby boomers are leaving the labor market and this demographic change could impact the fragility of the pension system."

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