Japan - Country Analysis Paper
An Analysis on the Country of Japan
Introduction: Japan, a relatively small nation in size, located in Eastern Asia between the North Pacific Ocean and the Sea of Japan boasts a population of about 127,368,088 people; 10th most populated nation. It is quite hard to imagine how a country about the size of the state of California could have been positioned and was predicted to become the largest, most powerful economy in the world. Japan’s economy, in the years following World War II can be described as nothing short of a miracle. For three decades, the real GDP of the country grew at an unperceived rate: a 10% average in the 1960’s, a 5% average in the 1970’s, and a 4% average in the 1980’s (CIA World fact book, 2012). This tremendous success was due to a strong work-ethic, cooperation in the government industry, efficient and innovative high technology sector, and a comparatively small defense allocation (1 % of GDP) (CIA World Fact book, 2012). In the 1990’s, however, growth slowed down to 1.7 % which was due largely in part to inefficient investment. In 2007, Japan’s 69 year economic expansion came to a screeching halt; as a matter of fact, they entered an economic recession as of 2008. The global demand for Japanese exports decreased significantly; as a result, the recession worsened and has brought rise to a new challenge: deflation. In March 2011, Japan's strongest-ever earthquake, and an accompanying tsunami, devastated the northeast part of Honshu island, killing thousands and damaging several nuclear power plants. The catastrophe hobbled the country's economy and its energy infrastructure, and tested e country’s ability to deal with crippling natural disasters. As if matters could not get any worse, Japan’s massive government debt which totals over 200% of the total GDP; in addition to the aging population, pose two additional long-run problems for the country itself and foreign investors alike. Despite the past decade of
Introduction: Japan, a relatively small nation in size, located in Eastern Asia between the North Pacific Ocean and the Sea of Japan boasts a population of about 127,368,088 people; 10th most populated nation. It is quite hard to imagine how a country about the size of the state of California could have been positioned and was predicted to become the largest, most powerful economy in the world. Japan’s economy, in the years following World War II can be described as nothing short of a miracle. For three decades, the real GDP of the country grew at an unperceived rate: a 10% average in the 1960’s, a 5% average in the 1970’s, and a 4% average in the 1980’s (CIA World fact book, 2012). This tremendous success was due to a strong work-ethic, cooperation in the government industry, efficient and innovative high technology sector, and a comparatively small defense allocation (1 % of GDP) (CIA World Fact book, 2012). In the 1990’s, however, growth slowed down to 1.7 % which was due largely in part to inefficient investment. In 2007, Japan’s 69 year economic expansion came to a screeching halt; as a matter of fact, they entered an economic recession as of 2008. The global demand for Japanese exports decreased significantly; as a result, the recession worsened and has brought rise to a new challenge: deflation. In March 2011, Japan's strongest-ever earthquake, and an accompanying tsunami, devastated the northeast part of Honshu island, killing thousands and damaging several nuclear power plants. The catastrophe hobbled the country's economy and its energy infrastructure, and tested e country’s ability to deal with crippling natural disasters. As if matters could not get any worse, Japan’s massive government debt which totals over 200% of the total GDP; in addition to the aging population, pose two additional long-run problems for the country itself and foreign investors alike. Despite the past decade of