After Japan came out from the disaster and showed sign of economic recovery in early 2012, the world came across a downturn and made Japan economy into stagnation. Although the Japanese government has employed many positive fiscal and monetary policies, it cannot solve the real structural problems, such as population aging, deindustrialization, low employment will of young people, and insufficient labor supply. In agreement with the judgment made by most institutions that Japanese economic decline will continue into2012-2013, or even longer, we expect Japan's real GDP growth rate to be around 2% in 2012 and drop to 1% in 2013. <<