Macroeconomic Performance of Japan

Running head: MACROECONOMICS
Macroeconomics
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MACROECONOMICS1
Executive summary:
This report was aimed to analyze the macroeconomic performance of Japan in order to trace
whether it is suitable for investment from the Australian firm or not. Through this analysis it
has been found that, depending upon the tertiary sector Japanese economy has been
enhancing the growth rate at a rapid speed. It has also been seen that the economy has
evolved as the example for the world economy that how a state can become successful
irrespective of its geographical size and position. The report conclude that, Japan is one of the
best place, where the concerned firm can investment, however, it needs to consider the
recommendation while in the Japanese economy for better future.

MACROECONOMICS2
Table of Contents
Introduction:...............................................................................................................................3
Macroeconomic condition of Japan:..........................................................................................3
GDP growth rate:....................................................................................................................3
Unemployment rate:...............................................................................................................4
Inflation rate:..........................................................................................................................5
Government expenditure:.......................................................................................................6
General business environment:...............................................................................................7
Recent monetary policy of Japan:..............................................................................................8
Effects of GFC on Japan:...........................................................................................................8
Recommendations:.....................................................................................................................8
Conclusion:................................................................................................................................9
Reference:................................................................................................................................10

MACROECONOMICS3
Introduction:
Japan is the phoenix of the Asian economy that has emerged as one of the developed
nations around the world even after hit twice with the atom bomb charged by the US during
Second World War. Post Second World War, there has been a rapid transformation in the
Japanese economy to become where it is now. Presently the state ranks 3rd in the world
according to its nominal Gross Domestic Product (GDP) and as per the Purchasing Power
Parity, it ranks 4th highlighting the scale of development of the economy (Shirai, 2017). When
it comes to all weather trading partner of the state, then the name of Australia comes first
owing to the fact that Australia sends more amount of investment to the Japan than any other
economy and additionally trade of coal, iron ore and other minerals has been prominent
between Australia and Japan (Warner, 2015). Under this context, this report is aimed to
analyze the macroeconomic performance of Japan in order to trace whether it is suitable for
investment from the Australian firm or not.
The macroeconomic condition of Japan:
Macroeconomic analysis of the Japanese economy is as follows:
GDP growth rate:
GDP growth is one of the best indicators of the economic development. The rise in
the GDP growth rate describes the better economic position of the state and a fall in the
growth rate of GDP describes the poor condition of the economy (McCombie & Thrilwall,
2016).