Japan's Economic Recovery

Japan has now been ranked as the third largest economy in the world. This status definitely did not come easy, as for several decades Japan suffered from low growth rates and deflation, with very little signs of economic recovery. In addition, several unfortunate events hindered Japan’s growth even further. Such events included the global economic recession in 2008-2009 which negatively affected several countries around the world, hence resulting in a decline for Japanese exports on the global markets, particularly the United States and Europe. Also, in 2011 the 9.0 magnitude earthquake and the resulting tsunami which hit Japan caused severe infrastructural damage, thus disrupting manufacturing and setting Japan even further back. As if that was not enough Japan’s nuclear reactors became completely shut down after nuclear plant accidents causing the industrial sector to now rely very heavily on the import of fossils fuels. However, after the election of the Abe government in December 2012 Japan began showing signs of vitality, with the platforms for Abe’s reign being economic recovery and revitalization. Despite the country’s huge economic recovery, it still faces several problems such as low growth challenges, and an aging work force. Nevertheless, the current government seeks to restore Japan on to a …show more content…
It also serves as the United States fourth largest trading partner. These two economies are closely intertwined through trade and capital flows, and according to a 2012 estimate together they account for over 30% of the world domestic product. To truly understand the U.S and Japan’s economic trends one must carefully analyze the differences in the figures of their economic indicators. Such economic indicators such as Gross National Income (GNI), Gross National Product (GDP), and inflation rates amongst others allow for analysis of economic performance and predictions of future