This year has been a tough year for the world economy after the recession. It is getting into pitfalls after pitfalls, the dangers to oil producing regimes and now a 9.0 earthquake plus a 30-meter tsunami in Japan. Japan’s economy is among world’s top 5 big economies that is facing a bigger threat beyond the destruction caused by earthquake and Tsunami. The Japanese economy was already in trouble but now it is facing a mammoth task of reconstruction and rehabilitation. In order to cope with this task the Japanese government will have to pile billions of dollars of fresh borrowing on top of a debt load that is already one of the biggest in the world. Japan was struggling from last 2 decades after the collapse of a major financial bubble. Japan faced four recessions, with virtually flat lined growth, GDP rising less than 1 percent a year. There were already forecasts that Japanese economy will continue contracting in the next few quarters. On top of all these worries is a nightmare looming on Japan from last two decades and that is their aging or to rightly putting it declining population.