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
Everyone here is talking about long term problems. The recent issue has been more the BOJ’s lack of interest rate hikes and QE causing the yen to fall relative to other nations. This increases costs for importers, which can cause bankruptcy. Losing pricing power parity is a big deal.
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