Download Japanese economy

Japanese economy
„Stagnation vs. Recovery“
Krystyna Šípošová
Content
•
•
•
•
•
•
Economic profile
What caused the crisis?
Slowdown factors
Driving factors
Positive signs for the future
Conclusion
Economic Profile
•
•
•
•
industrialized, free-market economy
currency - ¥ Japanese Yen
the world's 2. largest economy after US (GNP)
the 4. largest after the US, China, India by PPP
• est. GDP growth I,5 %
• inflation
-0,5%
• unemployment
4,7%
Trade and industries
• Exports - cars, electronic devices, computers
US, China, South Korea, Taiwan, Hong Kong
• Imports - raw materials, oil, foodstuffs, wood
China, US, South Korea, Australia
• Industries - motor vehicles, industrial and
transportation equipment, electronics,
chemicals, steel, machine tools, processed
foods, nonferrous metals, agriculture 2% of GNP
What caused the crisis?
• 1980's, real estate prices soared to super
inflated levels
• 1989-90, burst of „bubble economy“- land and
stock prices plunged
• bad loans, banking crisis
• 1997 - consumption tax increase from 3% - 5%
Slowdown factors
• decline in population, high % of elderly
• low openness to foreign market
high regulation, formal & informal trade barriers
• lifetime employment
• seniority system
low productivity, high costs, high prices
Driving factors
•
•
•
•
•
•
reforms – privatization of the Jap. Post
deregulation
deal with non-performing loans
elimination of the budget deficit
stabilization of the financial system
productivity-related wages, flexible labor market
economic stabilization and growth
Positive signs for the future
•
•
•
•
•
increased labor flexibility
rising employment and wages
growth in GDP and in consumption
increasing importance of shareholder value
increasing number of mergers and acquisitions
Conclusion
Japan had largely recovered from
„the lost decade.“
(The Times)
„Sun also rises.“
(The Economist)
Thank you for your attention!