Monday, December 25, 2023

Japan Nominal GDP Not Among OECD Highest: Updated Feb. 29, 2024

 

Japan's nominal GDP per capita at record-low 21st among OECD members

Article Source: https://mainichi.jp/english/articles/20231225/p2g/00m/0bu/037000c


Ideas:

At one time, Japan was one of the richest countries in the world, and was running high in the 80's, but since the asset bubble crash and subsequent stagnation and inflation, the Japanese economy keeps falling farther and farther behind other advanced countries.

And then add in its very low birthrate, it doesn't get any better. The only country with a lower birth rate is South Korea, as the lowest in the world.

Both Japan and South Korea have some of the same problems, being less that favorable working conditions for working women, long working hours, low productivity rates, and super expensive costs for children's education.

Both countries seems to miss the point, being the long work hours and expensive children's after school education as reasons for low birth rates.

Most of the countries listed, for the most part, have much better work situations than Japan and South Korea, and much better society and health situations.

Except for the US, with its somewhat dismal medical situation, with super high medicine prices, Japan and South do have very good medical situations, but that hasn't translated into better work productivity or better birth rates.

Its amazing how far Japan has fallen, as back in the late 80's it was expected to be stronger than the US in its economy.

But some have suggested that maybe Japan grew too fast in the 60's 70's and 80's much like South Korea in the 70's 80's, 90's and 2000's. Now maybe China is experiencing the same situation as now it needs to restructure its economy.

Japan, it seems, to fall in terms of percent of global GDP and might continue to fall in the coming years.

At the same time, despite its GDP challenges, the Japanese economy is a fairly stable economy despite all of the noise surrounding its economic growth.

As most Japanese citizens and will probably tell you they are unaware of what going on with the economy other than the effects of inflation on their personal lives.

That's not a negative idea about Japanese citizens, but like most people around the world, they are focused on their own personal lives and or lives of their family members and not about what's going on with the Japanese economy.

The news already, in Feb. of 2024, has said Germany has passed Japan as the third largest economy in the world.

The weak Japan has both positive and negative effects. A weak yen is a positive for exporters as they get more for their sales overseas, but its a negative for domestic prices, as Japan has to import much of what it needs.

The weak yen is a positive for international tourists who go to Japan, as the weak yen, gives them more purchasing power.

The Japanese economy is in the continued inflation situation with no real end in sight other than its slowly decreasing.

But the challenge is consumer spending has always been weak in Japan compared to other advanced economies, and with its low birth rate, and aged society, it doesn't look like its going to get much better.

But if you go to the large Japanese cities, all seems good and normal with consumers spending a lot. The challenges is in the not so populated areas is where the challenge lies related to consumers spending.

Have a nice day and be safe!

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