Japan's Economy - Bader Al Mulla

Japan’s economy is yet to recover from its recession. The government of Japan is trying to take serious steps to solve this problem. Economists see that Japan’s problem comes from high government debt, again population, and ongoing recession since 2008.

The government is considering reversing the currency markets and wakening the yen. The Central Bank of Japan is printing money aggressively, but it seems that the yen will still keep being strong because the Americans and Europeans also overflowing their markets with new money, so if the yen remained to be strong Japan’s deflation will keep going with doubts to come to an end.

Aging population is another problem that can cause and bring a decrease to the technological innovation, consumer demand, and manufacturing facilities in Japan, but sadly there is no solution for this problem. However there is one way and that is to deregulate and open the labor market in Japan by increasing immigrants from Asia and try to stimulate the services economy, for example in medical or agriculture businesses.

Some says that in the positive side of yen being strong that it will allow Japanese to enjoy imported goods at lower prices and the Japanese companies can make overseas investments, but this should happen quickly. Japan must act fast like other countries and make Japan should make decisions very fast to penetrate the economies like India where there are lots of opportunities to get high and great returns on their investments.