Macroeconomics project conclusions

Japan’s Quick facts

Population = 126.9 million

GDP = $5.2 Trillion

GDP per capita = $41,275

Unemployment = 3.1%

Inflation = -0.1%

Economic history

The Korean War in 1950s helped recover Japans economy. Japan profited from the war because orders for good and services were assigned to Japanese suppliers (). The Japanese economy was in the process of change which caused a great deal of growth for the nation. The annual growth rate which was 10% jumped to more than 13% from 1950-60s.

Economic changes over time

By 1970s, change in factors helped bring an end to the high growth that Japan experienced in the 50s. Factors included advances in technology, the disappearance of ample rural labor for industry and the decline in international competitions of heavy manufacturing industry such as ship building, aluminum, fertilizers and steel (). In 1971 the united states devalued the us dollar by 17 percent against the Japanese Yen.

The OPEC oil embargo of 1973 aided the changed in the economy as japan depended heavily on middle eastern oil. The unexpected rise in oil prices put an end to relatively cheap and abundant energy recourses.

By the 80s, the Japanese economy had become one of the largest and most sophisticated in the world. Japanese unemployment rate has always been relatively low but in 2000 Japan’s unemployment rate reached 5%. After this change Japanese prime ministers called for reform spearheaded by Hasimotos Ryotaro.

Consumer spending

Consumer Spending in Japan increased to 300525.40 JPY Billion in the fourth quarter of 2017 from 298979.30 JPY Billion in the third quarter of 2017. Consumer Spending in Japan averaged 246596.27 JPY Billion from 1980 until 2017, reaching an all-time high of 305791.80 JPY Billion in the first quarter of 2014 and a record low of 150439.60 JPY Billion in the second quarter of 1980 ().

The chart above details the Japan’s Consumer spending starting from Jan 2015.

Government spending

Government Spending in Japan decreased to 106173.70 JPY Billion in the fourth quarter of 2017 from 106181.40 JPY Billion in the third quarter of 2017. Government Spending in Japan averaged 78330.03 JPY Billion from 1980 until 2017, reaching an all-time high of 106678.30 JPY Billion in the first quarter of 2016 and a record low of 43597.40 JPY Billion in the first quarter of 1980 ().

Exports

The top exports of japan are Cars, Vehicle parts, Integrated circuits and industrial printers.

The top export destinations are The United States, China, South Korea, and Thailand.

In 2016, Japan exported 605 billion, which makes it the 4th largest exporter in the world.

Imports

The top imports are crude petroleum, petroleum gas, packaged medicaments, computers.

The top import origins are China, The United States, South Korea, Germany, and Australia.

In 2016 Japan imported $583B, making it the 5th largest importer in the world.

Trade Balance

As of 2016 Japan had a positive trade balance of $21.6B in net exports. As compared to their trade balance in 1995 when they still had a positive trade balance of $131B in net exports.