personally, i think this is a very interesting situation. first off, this decline is seen as the start of a much bigger decrease in population, so it's continuing and not an isolated incident for the year. secondly, the economy is so used to bigger and bigger markets and larger profits each quarter, that they won't know what to do when sales drop - not because of any other reason than that there are just less people to buy things. less people also means less tax revenue for the government. speculation says that japan is probably headed for a recession, if not a full-blown depression if they are not careful. as far as i'm aware (which i admit isn't very far and i could be comepletely wrong), this is really the first time a population of a modern, world power country has decreased since WWII, possibly the first time ever without the hand of war playing a part. the ramifications for this could be huge, and be felt globally.
[chicken little mode off]
meh, then again, maybe the chinese will just pick up the slack and everything will stay the same as it ever was.