Japan's economic growth and overall economic condition

(Japan's economic growth and overall economic condition)

Economics was formerly called political economy. The term Political economy means the management of the wealth of the state. This definition was too materialistic. It gave more importance to wealth than to man for whose use wealth is produced.

Till 1970’s, Japan GNP (gross national product) had been the second largest in the world, only behind the United States. It had ranked among the major industrial nations in 1990 in terms of per capita income. The GNP of Japan had risen sharply from US$9,068 in 1980’s to US$23,801 in 1990’s. After the 1980 economic depression, the japan again revamped its position and its economy had gone through expansion phase from 1986 to 1992 and it had entered again in recession 1992. The economic growth of Japan, was around 5 percent between the period 1987 and 1989 renovated many industries, such as steel and the construction sector, the dominant sectors during mid-1980’s. However during 1992 the Japan GNP growth slowed to 1.7 percent. The industries like automobiles and electronics which had shown phenomenal growth during 1980’s and brought record employments were also under recessionary phase during 1992. Even the automobile domestic market had dropped and at the same time the share of Japan had dropped in US markets. This lead to the decrease in the foreign and domestic demand for the Japanese electronics market and its prominent position in the world’s semiconductor market in the world had also declined and Taiwan, South Korea and United States had gain major share. The Japan economy started growing by 0.3 percent in the successive years after the recession.

The government of Japan played a significant role so as to provide motivation to the industries and revamp the recession condition. Some of the important motivations like closing of election during the recession period so that party in the charge of government had again given chance to show its competence to close the recession. The efforts of the government came into light and Japan economic again improved slowly but shown a positive growth, showing strategic role of government to remove recession (Over view of Japan’ s Economy, 2012)

Bibliography

Japan. (2012). Retrieved 11 05, 2012, from Heritage: http://www.heritage.org/index/country/japan

(2012). Over view of Japan’ s Economy.