1. Presente
d By:
Monil Shah - B048
Pooja Shah - B049
Arveen Shaheel - B050
Samiksha Shetty - B051
Siddhanta Singhania - B052
2. Japan – Timeline
1614: Christianity banned from Japan
1854: USA forces Japan to sign a trade
agreement; reopens Japan to foreigners
1864: British, French, Dutch and American
warships bomb Choshu and open more
Japanese ports for foreigners
Edo Period (1603–1868) Inference:
•In order to eradicate the influence of
Christianization, Japan entered in a period of
isolation, during which its economy enjoyed stability
and mild progress.
•Economic development during the Edo period included
urbanization, increased shipping of commodities, a
significant expansion of domestic and, initially, foreign
commerce, and a diffusion of trade and handicraft
industries
1868: Shogun Yoshinobu forced to
resign, emperor Meiji is restored.
1869: The Confucian school of Edo
becomes a Western-style university
1873: Western mining techniques
introduced and expands the business
Prewar Period (1868–1945)Inference:
•After the Meiji restoration, the country was opened up
to Western commerce
•Leaders inaugurated a new Western-based education
system for all young people
•To promote industrialization the government decided
that, while it should help private business to allocate
resources and to plan.
1945: the USA drops two atomic bombs on
Hiroshima and Nagasaki
1951: Japan's GNP is US$14.2 billion
1990: The Japanese "bubble economy"
bursts, with stock prices declining for 13
years
Postwar Period (1945–Present) Inference:
•From the 1960s to the 1980s, overall real economic
growth has been called a "miracle"
•Growth slowed markedly in the late 1990s also termed
the Lost Decade, largely due to the Bank of Japan's
failure to cut interest rates quickly enough to counter
after-effects of over-investment during the late 1980s
Arveen Shaheel - B050
3. Japan – Facts & Stats
• GDP
$5.869 trillion (2011 est.) (nominal; 3rd)
$4.440 trillion (2011 est.) (PPP; 4th)
• GDP growth
1.4% ( Q2 2012)
• GDP per capita
$45,920 (2011 est.) (nominal; 18th)
$34,740 (2011 est.) (PPP; 24th)
• GDP by sector
Agriculture: 1.2%, Industry:
27.3%, Services: 71.6% (2011 est.)
• Inflation
0.3% (April 2011)
•Japan’s Economy is the third largest national
economy in the world (after USA and China)
•World's second largest developed economy
•International Monetary Fund says the
country's per capita GDP (PPP) was at
$34,739 or the 25th highest in 2011.
•Japan is a member of Group of Eight.
Arveen Shaheel - B050
5. Japan’s GDP growth rate –
Analysis I
*Region
1.Point
• As Japan's second period of economic development began post World-
War, millions of former soldiers joined a well-disciplined and highly
educated work force to rebuild Japan
• The highlighted part shows the boon the Japanese Economy was
experiencing post the world war. The “Miracle” time in the Japanese
Economy.
• The mid-1960s ushered in a new type of industrial development as the
economy opened itself to international competition .
2.Point & 3. Point
• World Oil Crisis
• The World Oil Crisis in 1973 shocked an economy that had become
virtually dependent on imported petroleum. Japan experienced its first
postwar decline in industrial production, together with severe price
inflation.
Period Between 1975-1990
• Changing price conditions favored conservation and alternative sources
of industrial energy.
• Advances in micro circuitry and semiconductors in the late 1970-80s
led to new growth industries in consumer electronics and computers
• Structural economic changes, however, were unable to check the
slowing of economic growth as the economy matured in the late 1970s
and 1980s, attaining annual growth rates at only 4 to 6%.
Arveen Shaheel - B050
6. Japan’s GDP growth rate –
Analysis II
Arveen Shaheel - B050
**Region – “The Lost Decade”
4.Decline due to Liquidity Trap & 5. Point
• At the beginning of 1990, stock prices plummeted & there was a sharp
declines in land prices. This marked the start of major economic
recession. Japan's financial and economic systems, which were
excessively dependent on land, consequently approached collapse.
• Massive bad debts were created in financial institutions' loan
portfolios, as corporate borrowers suffered serious losses due to
declining land prices. In 1997, large banks began to fail. In 1998 and
1999, the government injected public money into the banking sector to
stabilize the financial system. The effect can be seen in the recovery in
1999-2000.
• 2002 - Decline caused by slower export growth following economic
slowdowns in the U.S.A. and the Asian region, both Japan's major
export destinations .
• 2008 - Japanese economy was faced with a standstill in its path to
recovery as private consumption and investments in plant and
equipment fell flat and so did production. This occurred against the
backdrop of soaring crude oil and raw material prices and
repercussions from the subprime mortgage loan problems that, since
mid-2007, rapidly clouded future prospects for the world economy
further.
7. Japan’s GDP growth rate –
Analysis III
Arveen Shaheel - B050
***Region
2010-2012 – Recent Trends
• From around October 2010, the economy has been at a standstill
and started to recover in 2011.
• However, owing to the tsunami damage, supply chain disruptions,
restriction of power supply, and nuclear accidents caused by the
Great East Japan Earthquake in 2011, Japan fell into an economic
slump and a worsening fiscal position.
• As of June 2012, the economy still remains in a grave condition
but is moderately recovering through the demand for the
reconstruction of the earthquake.
