A Sneak Preview of The Economy of Japan
Regardless of its small size, the economy of Japan is no doubt among the top in the world. Some statistics show that it’s the third largest by nominal GDP and purchasing power parity after the US and China. While their excellent economic rating worldwide is also attributed to the higher amounts of exports, Japan’s economy is primarily guarded by some expertly crafted out cultural philosophies.
The economy of Japan runs on an annual trade surplus with their imports largely being raw materials for the manufacturing industry and fuel to power their machinery. Albeit they also import foodstuffs such as wheat and meat, they are particularly famous for trading with the US and China. Japan, however, boasts of being among the most technologically advanced nation in the world, making top-notch electronic equipment and automotive.
Being their economic backbone, they have strived to ensure that their manufacturing industry thrives without widely depending on fossil fuels. After the 2nd World War, the Japanese economy grew by leaps and bounds, often registering double figures. In fact, it was only until recently when it was surpassed by the Chinese economy.
The “Lost Decade” of the 1990s threatened to hamper the economy of Japan’s growth level although they eventually managed to tame it. Additionally, the wild public debt that originated from the bigger aging population grew to being a challenge in the millennium. Today, however, Japan boasts of being among the largest music markets in the world. Additionally, adequate natural resources including some volcanic islands and mountains are enough to support Japan’s economy.
Recently, Japan’s premier Shinzo Abe set out some strategies to revive their economy that’s still trying to gain traction. Their prices have remained at an all-time low coupled with small spending rates. With the danger of inflation looming, Mr. Abe’s initiatives are expected to mitigate that danger. The economy of Japan is widely affected by the low level of spending which weakens their currency. With their mastery of manufacturing and investment, the economy of Japan is poised for the best.