Japan 's World 's Third Largest Economy

Japan is home to a lot of ancient cultural artifacts and yet serves as an example of the developed world samurais, high-speed trains, home to some of the world’s largest tech companies, and may evision Tokyo as a bustling fast paced city. Japan’s population is declining, this isn’t unusual in a time where developed countries are relying on less children.What is overlooked when describing the now 3rd largest economy on Earth is how it went from surrendering during WWII to becoming an industrial superpower. There have been many changes but one have remained constant, which is the collective drive to work and excel. It has heavily influenced the Japan we know today.

Other statistical important values are the unemployment rate and life expectancy. The unemployment rate amount Japanese is 4.0%, whereas the United States is 7.4% (Find-the-data, 2015). This is one of the reasons the Japanese government is able to keep down costs. However, the average life expectancy of Japanese citizens is 83.33 years to U.S. 78.84 years, which would require Japan to care for their citizen’s longer (Find-the-data, 2015). This can financially impact the government with increased expenses and costs to an aging nation.

An active APEC (Asia Pacific Economic Corporation) member, Japan is the second most dominant world economic power. Being a world power endows it to having an influential role in not only in regional affairs but also global.

To view a window into the future, take a look at Japan, where their population, who is advancing in age has brought the country’s once amazing economy to a standstill to the point where it will likely never truly recover.

Japan’s unemployment rate of about 4% opposed to the U.S. unemployment rate of close to 10%. Even the financial debt to GDP ration is an advantage, and debt in the private sector has not increased unlike the U.S. and European countries, (Time, 2009). In addition, since Japan is a huge exporter and with the U.S. demand going downward, the international balances and growth declined especially as the dollar value dropped and the yen surged. •

The statistics show that the growth of the economy in Japan comes out very good, but it is a

In the past few decades, Japan has experienced a rapid growth with various problems associated with urbanization. Japan has also been facing declining birthrate, aging population, poverty, and overcoming deflation. Urbanization has enabled economic growth but it has contributed to climate change, pollution, congestion, and the growth of slums. Also Social and Economic development cannot be achieved without addressing global warming and other environmental issues. Due to these problems, Japan has passed several laws to implement urbanization policies and city growth management programs that primarily target regional balance in growth and concentration. On top of this Japan has worked its way to reform its economic and social issues.

The United States has for more than a century maintained the largest economy in the world. Japan, on the other hand, currently has the third largest economy in the world (according to some estimates) after realizing incredible growth since the damage and ruin it experienced during World War II (BBC, 2015). This essay compares and contrasts the current economies of the United States and Japan in terms of three leading economic indicators: real Gross Domestic Product (GDP), inflation, and unemployment. While some similarities exist between the two economies this comparison will highlight what the differences mean in terms of economic health for the two countries.

Japan is considered at this moment one of the most important countries in the world in terms of political power and the third largest national economy after the United States and China as per the 2011 figures. The development of the Japanese economy to reach such a status happened in time and especially after the Restoration of the Meji Dynasty in 1868. Since then, Japan was in constant contact with the western world especially with the United States.

1. In the years to 2050 the Japanese population is expected to decline, while the fraction of the population that is retired is expected to increase sharply. What are the implications of these population changes for total output and average living standards in Japan, assuming that average labour productivity continues to grow? What if average labour productivity stagnates?

The Japanese economy, the 2nd largest in the world, accounts for 7.1% Global World GDP, at US$4.6 triliion and a per capita income of approximately US$33,550 (World Bank 2006). As a result of globalisation, literacy levels are at 99% and the general living standards of the

Japan and Germany are two influential core nations with immense industrial and technological power, but these two countries regardless face issues within their economy and society. Several of Germany's problems include the absence of government aid, health risks, and the economic hardships women face. In Japan, their issues involve the unbalance distribution of labor, women underrepresented in high-ranking jobs, and the impact a parent's financial status has on their child's future. Although Germany and Japan are two separate countries, it is a surprise that they share a few similar issues relating to poverty and gender equality. The increase of child poverty will be the first issue to be discussed. The other major issue is the health risks faced by both Germany and Japan. Finally, the last issue will be the inequalities women face in their male-dominated countries.

When it comes to Japan’s financial environment one of the first things to note is the vast pile of debt that Japan has accumulated over the years. Japan’s gross debt-to-GDP ratio stands above 240 percent, which is the highest of all OECD countries (The Economist, 2014). In contrast, in 2010 the ratio was ‘only’ 178.4 percent. The reason for this huge debt pile is that Japan has had twenty-two consecutive budget deficits (OECD, 2015). And in recent years these deficits were often over 8 percent of GDP. The main reasons for the rising budget deficits are that government revenues have been stable as a percentage of GDP, whereas government expenditures have increased steadily (The Economist, 2014). For now, the burden the debt due to interest payments is limited due to the low interest rates at which Japan is able to borrow. However, an ageing population will make repaying debt in the future ever harder (OECD, 2015).

Japan ranks as the third largest economy in the world as of 2010. The GDP at current prices in US dollars in Japan was reported at 5068.06 billion in 2009, according to the International Monetary Fund (IMF). Japan’s resurgence after World War II has however reached an inflection point in yearly 1989 after the burst of Japan’s asset price and real estate bubbles. As can be seen from the graph below, Japan’s GDP has hovered around the same level through more than 20 years of economic stagnation. The GDP’s slow growth has been exacerbated by the world financial crisis of 2008. A major landmark of Japan’s stagnation has been the BOJ’s fight against deflation.

Suggestions have been made as to how to offset the decrease in population—increasing the immigrant population as well as incentives attempt to increase the birth rate. According to the living and human development index, Japan has very high standard of living in addition to the highest life expectancy and the infant mortality rate is 3rd lowest.