Economic Analysis of Japan Assignment 2022

Running head: Economic Analysis of Japan
Economic Analysis of Japan
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Economic Analysis of Japan1
Table of Contents
Introduction......................................................................................................................................2
Production Output Performance......................................................................................................2
Unemployment................................................................................................................................4
Price Level.......................................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Economic Analysis of Japan2
Introduction
Japan is one of the developed countries in the world. The major sectors of the country are
agriculture, service and manufacturing. Among the three sectors service sector is the largest
sector of the country and it contributed 68.78 % to the GDP of the country in 2016. At position
second comes the manufacturing sector and it contributed 29.3% to the GDP of the country
(Katz, 2015). Finally comes the agriculture sector, it is the smallest sector among the three
sectors mentioned here and it is evident from the contribution of the sector in the GDP of the
country in 2016, which is recorded at 1.15%. The main products of Japan are automobile,
electronic goods, iron and steel, copper and semi-conductors. Japan also export all these product
to other countries of the world. In addition to that the top 5 exporter of Japan’s products are
China, the United States, Taiwan, Hong Kong and South Korea. Considering, the GDP of the
country for the last ten years it has been observed that the country has performed well in the last
ten years and due to that the GDP has increased from 2008 t0 2018. The most important
companies in Japan are Softank Group, Toyota Motor Corporation, Nippon Telegraph,
Mitsubishi UFJ Financial Group and Telephone and Japan Post Holdings.
Production Output Performance
Gross Domestic Product (nominal) is the entire amount of final goods and services
manufactured inside a country in a specified time period. GDP is measured in currency value
terms and it does not exclude the effect of the inflation rate and thus actual output of the country
is not reflected through GDP (Garin, Lester & Sims, 2016). Therefore, to find the actual output
of an economy the nominal GDP is divided and thus effect of inflation is removed from the GDP
values and it gives the actual value of the output produced (Nolan, Roser & Thewissen, 2016).

Economic Analysis of Japan3
The new value obtained for the GDP is known as Real GDP. Hence, Real GDP is the true
reflector of output created by a country in a given period of time.
Graph 1: Gross
Domestic Product of Japan (JPY Billion)
GDP of Japan is showed in the above graph from 2008 to 2018. The time period is considered to
assess ten years production performance of the country. In 2008, the GDP of Japan was 510000
JPY billion and after 10 years in 2018 the GDP has reached for the country to around 540000
JPY billion. It should further be considered that during this 10 years phase the country
experienced recession in 2008-2009, that hit the entire world. In that recession period, the GDP
of the country fell below 450000 JPY billion in 2009. Thus, from that level of GDP, Japan
improved and expanded by around 20% (Foster, Grim & Haltiwanger, 2016). This growth in
GDP of Japan is however not due to a sudden progress or development in the economy. The
GDP of the country has grown gradually after the conclusion of the recession period. The growth
of the GDP of Japan during this period has shown more or less stable growth with minimal
fluctuations. Japan was struck badly by the economic recession and it pulled down the economy
of the country by the significant amount but somehow Japan was able to recover from the