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Economic Performance of Japan

   

Added on  2021-04-20

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Running head: ECONOMIC PERFORMANCE OF JAPAN (2007-2016)Economic Performance of Japan (2007-2016)Name of the StudentName of the UniversityAuthor Note

ECONOMIC PERFORMANCE OF JAPAN (2007-2016) 1Introduction One of the predominant economies in the global framework, which has shownimmense growth and impressive development trends over the years and has developedphenomenally despite all the fluctuations and downturns time and again, is the economy ofJapan. Being an island of 378,000 square kilometres, Japan is one of the most developedmarket economy in the global framework, ranking third globally in terms of nominal GDPand also ranking fourth in terms of the purchasing power parity (Hughes, 2013). The islandcountry enjoys an extensively developed manufacturing as well as service sector and is theproud owner of the largest electronics commodity industry in the world and is counted as thethird largest manufacturer of automobiles in the world. Over the years, the economy of Japan has been subjected to considerable fluctuationsand dynamics, owing to the geographical and locational vulnerabilities and the huge naturalcalamities which have occurred in the country over time. Disasters like that of the Great EastJapan Earthquake (2011) as well as the Tsunamis have led to widespread destructions of theeconomy of the country as a whole. Apart from the natural disasters, the country has alsobeen subjected to various economic and commercial phenomena like that of the GlobalFinancial Crisis of 2008, which had immense negative implications on the economy of thecountry (Lockwood, 2015). The country has however, managed to overcome these crisis with time, much ofwhich can be attributed to the technological advancements and increased capabilities of thepeople of the country to adapt to different situations. Japan is considered to be one of themost innovating countries in the contemporary global framework and is known tocompensate its lack of natural resources and oil or gas by their technological infrastructures(Dore, 2013). However, the country has been experiencing a decrease in the population and a

ECONOMIC PERFORMANCE OF JAPAN (2007-2016) 2relative aging of the same, with 27% of the total population of the country being over 65years (2016) (Cook & Halsall, 2012). Keeping these aspects of the economy of the countryinto consideration, the following section tries to analyse the economic performance of thecountry in the time span of 2007 to 2016. Economic Performance of Japan (2007-2016) The growth and development of a country consists of development dynamics ofdifferent aspects of the country, of which the economic growth is of utmost importance asmuch of the welfare of the residents of the country depends on the attributes like their incomestatus, standard of living, employment scenario, the facilities which they enjoy, theadvantages which they are entitles to get from the government as well as the stability in theeconomy of the country (Morrison, 2012). Thus, it can be asserted that the economicdevelopment and performance of a country over the years can be analysed by observing thetrends of the different economic indicators like productivity, employment and inflationstatistics. Keeping this into consideration, the economic performance of Japan can beobserved and analysed as follows: a) Production or Output Performance of Japan One of the primary indicators of economic growth which is widely used in the globalframework is the Gross Domestic Product of the country, which shows the total value of thecommodities and services produced within the geographical boundaries of the country withina particular span of time, which is usually considered to be one economic year. The GDP ofJapan can be seen as follows:

ECONOMIC PERFORMANCE OF JAPAN (2007-2016) 3Figure 1: GDP of Japan (2007-2016)(Source: Data.worldbank.org, 2018)However, the Nominal GDP does not show the actual productivity growth as it cannotdifferentiate between the rise of GDP due to increase in output and increase in price. In thisaspect, the Real GDP acts as a more authentic indicator of economic growth of a country, asit measures the growth of output by keeping the price levels same as that of the base yeartaken (Rodrik, 2014). Figure 2: Real GDP Growth Rate of Japan (2007-2016)("International Monetary Fund", 2018)

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