Despite Japan’s “Lost Thirty Years” and economic stagnation, its growth rate has been the highest among G7 countries, with experts analyzing the reasons behind this unexpected result.
1Capital Region Tiger ★.Nov. 19, 2024 (Tue) 18:56:30.96ID:aw8AVKla9
Japan has been in a state of economic stagnation since the collapse of its bubble economy in the 1990s. This period has been referred to as the “Lost Thirty Years,” and it has recently become a hot topic that China’s nominal gross domestic product (GDP) has been overtaken by Germany and fallen to fourth place. However, taking into account the decline in the working population, Japan’s economic growth rate was the highest among the G7 countries. A professor at the University of Pennsylvania summarized the findings of a study like this. “How is it that Japan, a country that has long been known to be in a slump, has managed to take the lead in the G7?” Intrigued by these unexpected survey results, I interviewed the professor who conducted the research to find out the background behind Japan’s good results. We also spoke with Japanese experts and considered the challenges the Japanese economy faces in achieving further growth. (Kyodo News Brussels Bureau, Nakashima Yoshihiro)
Second from the bottom in terms of real growth rate The survey was conducted by three researchers, including Professor Jesús Fernández Villaverde of the University of Pennsylvania. The main figures on which the survey is based are taken from the World Bank database and compared across the G7. The latest version was released in August of this year. GDP indicates the total added value of goods and services produced within a country over a certain period of time, and is considered an indicator of economic trends and economic size. According to the survey, Japan’s growth rate from 2008 to 2019 was an average annual 0.58% in real terms, excluding the effects of price fluctuations. Among the G7 countries, Japan was second from the bottom after last-placed Italy, and far behind the top-ranked United States at 1.81% and Canada at 1.79%. In terms of per capita growth rate, Japan will see a slight improvement at 0.68%. This is because the population itself is on the decline. It ranked fourth overall in the G7. Comparisons per capita are “misleading” This survey focused on GDP per person of productive age, aged 15 to 64. They are considered to be the main drivers of production and consumption, but their numbers are declining significantly in Japan, where the population is rapidly aging. As a result, Japan’s growth rate per working-age population will improve to 1.49%, putting it in first place among the G7 countries. This was higher than Germany’s 1.35% and the United States’ 1.34%. For the full text, see source. Last updated: 11/19 (Tue) 11:33.
>>1 But their take-home pay is the lowest and their Engel coefficient is the highest Because it is redistributed to the elderly So even if the productivity growth rate of the working generation is high, it doesn’t mean anything Taxes and social security take it all away for the vested interests This is an issue that politics should improve.
It’s actually a miracle that a country that changed power, installed a traitorous prime minister, and let a neighboring country plunder its economy managed to escape stagnation only through the sacrifices of the Ice Age generation.
Reassess it in terms of working hours. Italians barely work and only take breaks, but they’re on the same level as Japanese people who work from morning till night.
>>25 If you search, you’ll find that the working hours of Japanese people today are among the shortest in developed countries However, there is a big difference between men and women.
In other words, the declining birthrate and aging population started earlier than other developed countries, East Asian countries (which now have lower birthrates than Japan), and Thailand (which now have lower birthrates than Japan). The level of the declining birthrate and aging population in Japan is not particularly bad, but it just started earlier.
>>29 I understand that, but they’re giving too much to the elderly. The working generation is suffering because of excessive intergenerational distribution. There’s probably room for improvement.
Don’t forget that the elderly are building assets due to the aging population.
The reality is that Japan is polarized between those who have few siblings due to the declining birthrate and are happy to receive a large inheritance that is not divided, and those who lost out on the parent lottery and are left with the burden of aging. It should be noted that the elderly in Japan have been saving properly, so the overall gains and losses are not so bad.
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