Despite the devastating earthquake that hit Japan in 2011, the country managed to overcome its devastating consequences in just six years. During these years the economy of Japan has recovered despite the fact that such a strike changed the economy to a great extent. The Japanese economy is third in the world, meaning that it has established itself firmly on the world despite the blows of 2011.
For those who do not know much about Japan, here are 7 facts about Japan’s economy:
Japan’s economy currently ranks third worldwide
The nominal Gross Domestic Product of Japan is $4.73 trillion.
It’s GDP per capita is $38,893.
Japan is an exporting giant
Japan’s economy depends mainly on exports which count for more than $640 billion.
Cars’ export amount to nearly $100 billion, while vehicles’ spare parts amount to $30 billion.
A slow economic growth
Despite the strength of the Japanese economy, it is characterized by a slow growth marked with an average of 10% in the sixties to an average of 4% in the eighties.
Japan’s economy has been stable for most years in the third millennium, but the country witnessed recession four times in 2008.
The most important reason for the slowdown in growth is attributed to the population pyramid, which is characterized by aging, since 27% of the population is over the age of 65.
Only 13% of the population is 14 years old.
Until 2011, Japan relied on nuclear energy to produce nearly 30% of the country’s needs for electricity. However, the Fukushima nuclear disaster led the government to order the shutdown of all nuclear reactors.
The current government has decided to relaunch these reactors with strict safety conditions. Two reactors were launched in 2015.
Due to the closure of the nuclear reactors, Japan’s dependence on imported oil raised dramatically, bringing the annual volume of imports to 3.4 million barrels per day, third of which come from Saudi Arabia.
ABENOMICS is the name given to the economic reforms launched by the current Prime Minister Shinzo Abe.
These reforms aim to increase the Gross Domestic Product by 20% or 600 trillion Yen by the year of 2020.