The Japanese economy is the third-largest in the world, following the United States and China. It is known for its advanced technology, strong manufacturing sector, and significant exports, particularly in automobiles and electronics. Major companies like Toyota and Sony play a crucial role in its economic landscape. Japan faces challenges such as an aging population and low birth rates, which impact its labor force and economic growth. The government has implemented various policies to stimulate the economy, including monetary easing and fiscal stimulus, aiming to boost consumer spending and investment.