Economy of Japan

Japan demographics

Japan's population is not only aging, like most so called advanced economy, the pyramid there there is going to be totally and severely inverted.¹ That is why Japan is facing a demographic problem, particularly their immigration laws are very strict.

Debt

Japan debt to GDP is one of the highest world wide. As of today it stands around 200% of GDP. It was higher but getting a bit better. As of the latest reports,² debt was about ¥1,346.7 trillion and the GDP is about ¥689,219.1 billion.³

What moves the Yen

Interest rates — usually the biggest short-term factor
Expectations about the Fed and Bank of Japan
Inflation
The "carry trade"
"Safe haven" behavior
Japan's trade and energy costs
Government intervention

Japan exports

Japan buys a lot of commodities, particularly oil. To do so Japan has to generate dollars, and that is generated through trades, exports to be specific. Below is Japan's export⁴

Month	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Jan	5.35	5.42	6.09	5.57	5.43	5.78	6.33	6.55	7.33	7.86
Feb	5.70	6.35	6.46	6.39	6.32	6.04	7.19	7.65	8.25	9.19
Mar	6.46	7.23	7.38	7.20	6.36	7.38	8.46	8.82	9.47	9.85
Apr	5.89	6.33	6.82	6.66	5.20	7.18	8.08	8.29	8.98	9.15
May	5.09	5.85	6.33	5.84	4.19	6.26	7.25	7.29	8.28	8.13
Jun	6.03	6.61	7.05	6.59	4.86	7.22	8.61	8.74	9.21	9.16
Jul	5.73	6.49	6.75	6.64	5.37	7.35	8.75	8.72	9.61	9.34
Aug	5.32	6.28	6.69	6.14	5.23	6.60	8.06	7.99	8.43	8.42
Sep	5.97	6.81	6.72	6.37	6.05	6.84	8.82	9.20	9.04	9.40
Oct	5.87	6.69	7.24	6.58	6.56	7.18	9.00	9.15	9.43	9.77
Nov	5.96	6.92	6.93	6.38	6.11	7.37	8.84	8.82	9.15	9.71
Dec	6.68	7.30	7.02	6.58	6.71	7.88	8.79	9.64	9.91	10.41
Annual	70.04	78.29	81.48	76.93	68.40	83.09	98.17	100.87	107.09	113.20

The above in Japanese Yen and it shows pretty good growth in Yen. The story might be different if one re-normalize that growth to dollar or gold.

Refs:

1 - Demographics of Japan
2 - Japan Central Government Debt
3 - Japan GDP
4 - Data for Japan export can be obtained from Trade Statistics of Japan