We often forget that Japan during the much of the 1990s was for the most part in a pro-longed recession in many ways similar to the one the world is in right now. Japan dealed with it and is still the world's 2nd largest economy.
However, I think this time is different for Japan. The demographics may not allow for Japan to "grow it's economy" in order to get itself out of the current predicament. Just look at the facts:
Age Structure:
0-14 years - 13.3%
15-64 years - 64.1%
65 years and over - 22.6%
Median Age:
Total - 44.6 years
Male - 42.9 years
Female - 46.5 years
Population Growth Rate:
-0.242%
Life Expectancy at Birth:
Total - 82.17 years
Male - 78.87 years
Female - 85.66 years
Total Fertility Rate:
1.2 children born/woman
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html
With an increasingly aging population, an extremely low birth rate, and a high life expectancy that keeps the government borrowing to pay for the pension and healthcare costs of the elderly, I just don't see how the Japanese government will grow itself out it's debt with more than a 5th of Japan's total population over the age of 65 and more than likely, the majority, depending on fewer and fewer of those working age to support their pension and healthcare costs.
