Hidden beneath the headlines about Japan¡¯s continual failure to reach its inflation target is a quiet reflation of its economy.

It took almost two decades, but Japan finally notched a record for the size of its economy in 2016, one of the most significant signs yet that Prime Minister Shinzo Abe¡¯s reflation policies have had an impact on underlying fundamentals.

Despite population declines on the order of more than a quarter million people a year, and in the face of muted productivity gains, Japan¡¯s nominal gross domestic product totaled ?537 trillion ($6.1 trillion) last year, government data showed Monday. Last year was the first time that nominal GDP, which is unadjusted for price changes, hit a record since 1997.