The Japanese economy is the third-largest in the world, following the United States and China. It is characterized by a mix of advanced technology, manufacturing, and services. Key industries include automobiles, electronics, and robotics, with major companies like Toyota and Sony leading the global market. Japan also has a strong export sector, contributing significantly to its economic growth. Despite its strengths, the Japanese economy faces challenges such as an aging population and low birth rates, which impact the workforce. Additionally, the country has experienced periods of stagnation and deflation since the 1990s. The government continues to implement policies to stimulate growth and innovation.