CURRENT STATUS OF JAPAN ECONOMY- NIRMAL CHAUDHARY
CURRENT
STATUS OF JAPAN ECONOMY
INTRODUCTION – The Japanese economy faced lots of struggle last year, including a historic decrease in the yen`s value against the US. Dollar and decades high inflation. Moreover, the country can try to pushed to resume economic ventures shutdown by the covid-19 pandemic, every department can cope with plethora of difficulties in import and export. Along with these store and restaurant have difficulty in consumer safety woes. At that time government and individual should take some safety measure to readdress this issue. In addition, the reopening of borders for inbound tourists for the first time in two years. While, some major economies including the U.S. are expected to increase this year due to a series of rate hike campaigns to contain inflation, Japanese economy is looking quite positive.
OUTLINE THE KEY ECONOMIC
STRENGTHS AND WEAKNESSES OF YOUR CHOSEN COUNTRY`S ECONOMY
· Economic strengths- Stability of finances: Distributed ledger technology (DLT) and wholesale are the two main types of CBDC. However, wholesale CBDC may boost the effectiveness of settling derivatives and securities transactions. The nation has a robotic financial department, and research using wholesale CBDC and privacy tokens has been done in Japan. They also have a digital security voucher that is issued and managed on a DLT platform, allowing for quicker settlement of cash and money.
* Technology advancement: In Japan, due to covid19 pandemic situation, there are numerous technology advancement occurred day by day such as smartphones or IC cards for cashless payments are available for payment service, and FinTech companies have become involved in providing cashless payment services.
*Highly skilled workforce:- In Japan, the human workforce are mainly qualified because the local universities and local governments should started re-skilled programs in varied city of Japan. In addition, in order to improve the effectiveness of the Declaration of Partnership Building.
*Stable Financial system: Japan is a stronger country in defence system rather than other department but also the financial system are well advanced compare to other countries such as France, Germany, and Italy. The infrastructure of banks are well established and employees have profound knowledge related to this field.
KEY ECONOMOIC WEAKNESSES
*Aging population: In Japan
aging population are major due to prevalence of cash and cash demand. Due to
that employment has been decreased and the biggest strain of social welfare.
The total population of over 65 ages is 1/3. So, the local government need to
provide monthly wage to full fill their daily requirement.
*Low birth rate: Japan birth
rate declined for seventh consecutive year in 2022 to a record low. This
reducing phase of low birth rate can directly affect to domestic market and
also the country may cope with long term economic challenges.
*Limited natural resources:
Japan is a country, where the natural resources were no more such as natural
gas, oil, gold, coal, copper, and iron. Moreover, this country resource are
much poor and depend heavily on imports such as raw material and energy. For
example, Japan is the largest importer of liquefied natural gas and coal, and
second -largest importer of oil in the world.
*Competitive challenges- In
this competitive world, Japan cope with too much competition from other
countries such as China and South Korea, mainly in Deflation, low
profitability, poor investment, and manufacturing. Furthermore, they may need
to take several steps to mitigate this issue and it can aid to proliferate
their economy.
INFLATION OF JAPAN ECONOMY- Due
to Russia-Ukraine war, in January last year, the core consumer price excluding
volatile fresh food increase 0.2% from a year earlier, by there was a sudden
increased nearly 41 year high of 3.7%. The inflation rate probably hit the surge
in december or will do so in january. The inflation rate probably hit the peak
in December or will do so in janauary. Mainly, what has been happening in the U.S.
and Europe,the major factor to proliferate the price in Japan are supply of
energy and food prices, So once thosego off the boil, inflation will go down.
The Japanese government compare inflation to other countries, price increase
prompted the local council to implement some measures to curb the impact and
including subsidies for gasoline and cash handouts for low- income household.
CONCLUSION- Japan economy is likely to continue recovering from time to time related to other nations, supported by factors such as materialization demand, the Japanese country had cope with many pressure to recover their overseas economies. After that virtuous cycle from income to spending gradually intensifies, Japan economy has showed increasing trend day-by-day to improve their potential growth rate. Due to covid-19 pandemic, every country are facing numerous challenges with their economy at that time japan decide to succor their economy by taking some prominent steps: Digital currency, Demand and Supply, Wall mart, Hotel, Education department, Health department. All these firms are very struggle at covid-19 pandemic time, but Japanese government should take conscious step to readdress this issue by improving their economy, but Japan is on the platform to increase their economy by 2024 by other countries.
* REFERENCE LIST
-
Nagata, K. (2023). What to expect from Japan’s economy in
2023. [online] The Japan Times. Available at: https://www.japantimes.co.jp/news/2023/01/03/business/economy-business/japan-economic-outlook-2023/.
- Outlook for Economic Activity and Prices (January 2022) The Bank’s View 1. (2022). Available at: https://www.boj.or.jp/en/mopo/outlook/gor2201a.pdf#:~:text=Japan%27s%20economy%20is%20likely%20to%20recover%20as%20downward [Accessed 4 Nov. 2023].
- Pinterest. (n.d.). Pin on Statista Infographics. [online] Available at: https://www.pinterest.com/pin/253186810290154203/ [Accessed 4 Nov. 2023].
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