They got overtaken by Germany a country with 50% lower population and the gap is widening. Their gdp per capita is below some Eastern European countries and way below other developed countries that used to have similar gdp per capita. Yen’s devaluation is getting faster so in the future I don’t think Japan can even be called a first world country anymore. What exactly caused this? I know Japan has been in recession since the early 90s but this last few years seem to be extra harsh on Japan
In: Economics
Its not. GDP is very strongly related to population growth. It is not necessarily a good way to measure “health” when the population is shrinking.
You really can’t look at Japan with a keynesian point of view (that growth is infinite for all intents and purposes, the next generation being larger, so the current generation can incur debt as long as the future revenue is greater than the interest, etc).
Japan is doing alright. The weak yen is bolstering its exports, and people have adjusted to fewer imports or more expensive imports. Japan has been focused on trying to be more self sustaining for decades. Its fluctuation in global significance won’t impact it nearly as much as a country like, say, Sri Lanka, which is entirely dependent on outside trade for essential infrastructure.
Also, Japan’s infrastructure is relatively strong. If you want to say Japan has a week economy, you’ll need to be more specific by what you mean. Japan’s devalued yen and its economic health aren’t quite as strongly related as you are implying.
Latest Answers