Japanese Economy in Crisis: Concerns Rise Amid Criticism of Finance Ministry

There has been a lot of talk about the Ministry of Finance’s official social media account being inundated with criticism, but among the comments there were also voices expressing concern for the Japanese economy. In terms of GDP per capita, Japan’s GDP is lower than the average for OECD (Organization for Economic Cooperation and Development) member countries, meaning that Japan can no longer be considered a developed country. The exact opposite situation has developed from the period when the Japanese economy was growing rapidly, and we now find ourselves in the same economic situation as we were in around 1970. What’s particularly problematic is that there are still very few people who are aware of the danger this poses. Japan has become a “poor country” The figure at the beginning shows the long-term trends in per capita GDP in Japan, the United States, and South Korea, with the OECD average set at 1. The OECD member country average was used as the base because it was believed to represent the average value for developed countries. Japan’s value has been below 1 since 2021. In other words, Japan can no longer be called a developed country. I drew the same diagram a few years ago. I was shocked at that moment. This is because it was thought that if things continued as they were, Japan’s value would fall below the OECD average in the near future. Now, drawing it again, I am shocked to see that my fears have become a reality. The data used here are dollar values ​​converted at market exchange rates. Therefore, there is no doubt that the main cause of this situation is the abnormal depreciation of the yen over the past few years. However, what we are looking at here is not the exact value expressed in dollars, but the ratio with other OECD countries. OECD countries are also affected by the strong dollar, so Japan’s decline in status in recent years is not solely due to the weak yen. Japan’s rapid growth and America’s stagnation after the war After World War II, the relative position of the American economy, which boasted overwhelming economic power, continued to decline until the 1990s. This is shown in the chart at the beginning of this article by the generally declining trend for the U.S. line throughout the 1960s, 1970s and 1980s (its temporary rise in 1985 is likely the result of the strong dollar that followed the Plaza Accord that year). On the other hand, Japan’s rapid economic growth from the late 1950s enabled it to join the ranks of developed countries in the 1970s. This is shown on the chart by the Japanese line crossing 1 in 1973. In the 1980s, Japan surpassed the United States in per capita GDP. In the mid-1990s, Japan’s GDP per capita was nearly twice the OECD average. However, after peaking around this time, Japan’s line began to decline. In other words, the Japanese economy’s global standing continued to decline. Source below.

ヤバすぎる経済危機に「気付かない」日本人…1人当たりGDPでわかる「衰退国家の惨状」

財務省公式SNSへ批判が殺到していると話題になったが、コメントの中には日本経済を憂う声も見られた。1人当たりGDPで見ると、日本はOECD（経済協力開発機構）加盟国の平均より低く、日本はもう先進国とは言えない状況だ。日本経済が急成長した時期...

www.sbbit.jp