Japan just lost its crown as the world’s third-largest economy

They retiring.
How many homeless they have with 124 million population? 2000-3000. We got more than that in Sweden(10x).
How many homeless in U.S? Statistics say 800 000 but more likely millions., of 330 million population.

My point is you can do pretty damn good without significiant economic growth, or being biggest economy and this is what Japan has done.

They had many decades of hard work behind this achievement(as reflected by japanese work culture) but now has managed to become the biggest investor in the world.

Japanese are smart, they saw the consequences of the policys in the rest of world early, and took action.
If they have a shrinking population it doesn’t matter much for them, as they are investors they simply live off the dividends of their investments.

Regarding decreased consumer spending, it’s proably not cause of the poor economy. It’s more likely as the population age, they are less likely to spend buying stuff, as they already have all what they need - atleast materially.
Japanese exports still strong, and they will use the money to invest more in rest of world.

Only risk i see for Japan is if rest of world has a great devaluation of their equities, or default on debt. Then indeed Japan can be in trouble with such aged population and lack of natural resources.