Opinion: Japan is haunted by a return to emerging-economy status

That's not quite what the article is arguing. It's not saying that Japan is becoming an emerging economy, but rather than it's haunted by a return to emerging-economy status. In fact, it's arguing that Japan's economy is an excellent place (or, in good position anyway), but that the symptoms of that appearing like "emerging-economies" is spooking the Japanese government and populace, potentially into throwing it away.

As the first Asian country to achieve the developed economy label, Japan has worn the badge for decades with as much pride as it has shown its terror at losing it. The idea of that happening, however absurd or remote, has elbowed itself a place in public discourse, often as a motivational tool.

But the hand-wringing, for now at least, feels misplaced. Japan’s economy could clearly be in better shape, and the weak yen risks suppressing a recovery in domestic consumption. But Japan’s foreign currency reserves stand at well over $1tn. The yen’s movement, however alarming on a chart, is beneficial to large parts of corporate Japan. The $1.4tn Government Pension Investment Fund holds roughly 50 per cent of its assets overseas and made record gains of $232bn in 2023. Nevertheless, the emerging economy bogeyman has recently been deployed more persuasively.

But what the recent ructions in the yen should most powerfully remind everyone is that Japan is in a moment of historic emergence. It is, all at once, exiting decades of deflation, stagnant wages, suppressed equity prices, change-resistant governance and labour excess and, given the unprecedented nature of what it has been through, doing so without guides.

The article is actually mostly positive on Japan's economic status. It's saying that it's haunted by a return to emerging-economy status, not that it is.