Japanese economy

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Japanese economy

• Stagnation vs. Recovery

Krystyna ípoová
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Content

• Economic profile
• What caused the crisis?
• Slowdown factors
• Driving factors
• Positive signs for the future
• Conclusion

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Economic Profile

• industrialized, free-market economy
• currency - Japanese Yen
• the world's 2. largest economy after US (GNP)
• the 4. largest after the US, China, India by PPP
• est. GDP growth I,5
• inflation -0,5
• unemployment 4,7

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Trade and industries

• Exports - cars, electronic devices, computers
• US, China, South Korea, Taiwan, Hong Kong
• Imports - raw materials, oil, foodstuffs, wood
• China, US, South Korea, Australia
• Industries - motor vehicles, industrial and
  transportation equipment, electronics, chemicals,
  steel, machine tools, processed foods, nonferrous
  metals, agriculture 2 of GNP

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What caused the crisis?

• 1980's, real estate prices soared to super
• inflated levels
• 1989-90, burst of bubble economy- land and
  stock prices plunged
• bad loans, banking crisis
• 1997 - consumption tax increase from 3 - 5

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Slowdown factors

• decline in population, high of elderly
• low openness to foreign market
• high regulation, formal informal trade
  barriers
• lifetime employment
• seniority system
• low productivity, high costs, high prices

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Driving factors

• reforms privatization of the Jap. Post
• deregulation
• deal with non-performing loans
• elimination of the budget deficit
• stabilization of the financial system
• productivity-related wages, flexible labor market
  
• economic stabilization and growth

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Positive signs for the future

• increased labor flexibility
• rising employment and wages
• growth in GDP and in consumption
• increasing importance of shareholder value
• increasing number of mergers and acquisitions

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Conclusion

• Japan had largely recovered from
• the lost decade.
• (The Times)
• Sun also rises.
• (The Economist)

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Thank you for your attention!