Japan Gdp
Gross Domestic Product of Japan
According to the business cycle graph of Japan shown above, Japan’s economy faced a recession in three years consecutively, from years 2007 to 2009. It only starts to recover from the recession at year 2009 and gradually picking up its pace in growth in both the years 2010 and 2011.
As seen in the graph, Japan’s economy made a plunge from year 2007 to year 2008, where GDP fell from ¥525,469,000 to ¥505,794,000 at a rate of 3.74%. This recession is the result of the world financial crisis that occurs from year 2007 to 2009.
From the respective years of 2008 to 2009, Japan’s economy had made a further plummet by 2.02%. The sharp decline in real GDP of Japan results in an economic trough at ¥495,570,000 in the business cycle. Economists estimates that it was the second worst global financial crisis that Japan encountered ever since the Great Depression that hit many countries in the 1990s.
Research shows that the causes of the global financial crisis are mainly the global imbalances and imprudent mortgage lending. There were unsustainable pattern of financial flows in many countries; major developing countries like China and Japan runs on large trading surpluses while countries like the USA and UK were running on deficits such as issuing of bonds. These global imbalances in the long term would be a threat to the global economy, which is the cause of the crisis in starting in year 2007.
Secondly, due to accumulative credits and rising house prices, the US government were very lenient on the bank loan requirements and this results people purchasing expensive houses that they initially could not afford for. With the continuous imprudent mortgage loaning, property prices fall and many had accumulated debts that have turned bad. Many commercial banks have closed down due to people declaring bankruptcies as they were unable to pay for their debts. Therefore, this contributes to the collapse of financial system in year 2007 to 2009.
According to the business cycle graph of Japan shown above, Japan’s economy faced a recession in three years consecutively, from years 2007 to 2009. It only starts to recover from the recession at year 2009 and gradually picking up its pace in growth in both the years 2010 and 2011.
As seen in the graph, Japan’s economy made a plunge from year 2007 to year 2008, where GDP fell from ¥525,469,000 to ¥505,794,000 at a rate of 3.74%. This recession is the result of the world financial crisis that occurs from year 2007 to 2009.
From the respective years of 2008 to 2009, Japan’s economy had made a further plummet by 2.02%. The sharp decline in real GDP of Japan results in an economic trough at ¥495,570,000 in the business cycle. Economists estimates that it was the second worst global financial crisis that Japan encountered ever since the Great Depression that hit many countries in the 1990s.
Research shows that the causes of the global financial crisis are mainly the global imbalances and imprudent mortgage lending. There were unsustainable pattern of financial flows in many countries; major developing countries like China and Japan runs on large trading surpluses while countries like the USA and UK were running on deficits such as issuing of bonds. These global imbalances in the long term would be a threat to the global economy, which is the cause of the crisis in starting in year 2007.
Secondly, due to accumulative credits and rising house prices, the US government were very lenient on the bank loan requirements and this results people purchasing expensive houses that they initially could not afford for. With the continuous imprudent mortgage loaning, property prices fall and many had accumulated debts that have turned bad. Many commercial banks have closed down due to people declaring bankruptcies as they were unable to pay for their debts. Therefore, this contributes to the collapse of financial system in year 2007 to 2009.