Understanding the Japanese Economy

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The Japanese economy can be quite tricky for many people, especially for foreigners. However, there are some essential details that anyone should know, and which we are going to discuss in this article. Therefore, if you are interested in this subject then you are welcome to read the below information.

It is hard to explain Japan’s economy to foreign audiences due to the fact that explaining something as complex as a $5 trillion economy is an absolutely difficult task. There are plenty of regional differences and conflicting trends. Furthermore, this country tends to be out of forsync with Europe and the US. When the United States was struggling in the early 1980s, Japan was actually powering ahead, and then at the end of 1980s when the United States recovered, Japan stagnated. The economic institutions that govern this country are extremely different than the ones that prevail in the United States or the European Union.

Japan is without a doubt one of the richest countries in the world. Its rapid economic development that took place in the 20th century is the stuff of legend. The Tokyo’s Ginza district is definitely a testament to an extremely wealthy economy.

In case you didn’t know, Japan is also the world’s biggest automobile manufacturing country, has the biggest electronics industry, and is quite often ranked among other countries leading several measures of global patent filings. Japan focuses these days on high-tech and precision goods such as robotics, optical instruments, and hybrid vehicles as well. This is not everything because this country is also the largest creditor nation in the entire world. It doesn’t only have a considerable net international investment surplus but it is also running an annual trade surplus.

The national debt is mostly owned by Japanese nationals. The economy of this beautiful country faces considerable challenges posed by a declining population. The statistics showed a decline for the first time in 2015, and the projections actually say that it will continue to fall below 100 million by the middle of the 21st century.

In terms of infrastructure, we can say that Japan is an innovative country. It has a large range of high-speed trains that other countries do not have, not to mention the perfect schedule with no delays at all. However, in case there are delays they are actually not more than one minute which is something that you will not see in other countries. The subways are also very modern, and all the other public transportation options. From this point of view, Japan is certainly above all the other countries worldwide.

Japan is the largest liquefied natural gas importer in the world, the second biggest coal importer, and the third biggest net oil importer. Kerosene is being used for home heating and plenty of taxi companies run their fleets on liquefied natural gas. A recent success was the introduction of Hybrid vehicles. The Prime Minister signed a treaty with UAE and Saudi Arabia regarding the rising prices of oil, ensuring this country’s stable deliveries from that region. Japan’s solar market is also booming today.

 

 

 

 

 

 

 

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