[theold]

The population has little saving due to the low saving rate.

The latter is to encourage spending on the economy. But the money moves oversea to get higher saving rates.

Domestically, they relied on imports of raw ingredients and oil to power their industries. These are in USD. With the big rise in USD and small rise in inflation, the impact is great.

What are left are those oversea Japanese companies and tourism which can help them. The inflation in this region is lower than Europe.