Which significant challenge does Japan face today?

One significant challenge that Japan faces today is its aging population. With a low birth rate and increasing life expectancy, Japan's population is aging rapidly, leading to a shrinking workforce and an increasing burden on the healthcare and social welfare systems. This demographic shift poses numerous economic and social challenges for the country, including a declining tax base, a shortage of caregivers for the elderly, and an increased strain on pension and healthcare systems. Addressing these challenges will require innovative solutions and policies to support the aging population and ensure sustainable economic growth.