When Japan's GDP began to decrease after hitting a crest in 1995, it led to a period of low growth

rates and collapse, known as the "Lost Decade." This decline in GDP also had a significant impact on
Japan's unemployment rate, which began to expand in the early 2000s and peaked at 5.5% in 2009
due to the global financial crisis.

At the same time, Japan's CPI began to decrease in the early 2000s, reflecting deflationary pressure
within the economy. This deflationary pressure continued until the Bank of Japan implemented
various monetary policy measures, including quantitative easing and negative interest rates, to
address the issue. These measures led to an increase in Japan's CPI from 2013 and a positive
inflation rate.

However, despite the increase in CPI and inflation rate, Japan's GDP growth rate remained modest,
with an average annual growth rate of 0.6% between 2010 and 2019. This slow growth rate may be
due to factors such as an aging population and a highly competitive export market.

The COVID-19 pandemic had a significant impact on Japan's economy, leading to a decrease in
financial activity and a subsequent increase in the unemployment rate. Additionally, the pandemic
caused a decline in Japan's CPI and inflation rate, which is expected to remain low in the near future.

In summary, changes in one indicator, such as GDP, can have significant effects on other indicators
such as the unemployment rate, CPI, and inflation rate. Additionally, external factors such as the
COVID-19 pandemic can cause sudden and significant changes in these indicators, leading to
economic uncertainty and instability