Japan in Troubled Times
For the Past 25 years, Japan’s economy has been under heavy rain, the Japanese economy has struggled in the past few years and in those years problems like deflation have only made things worse for the land of the rising sun.
In 2012, Japan’s economy has grown problematic and it was getting worse fast, mainly because of government debt. It was this year that the government debt have sky reached incredible levels if ratioed with the country’s Gross domestic product. Japan’s trade balance has gone into negative grounds for the first time since 1980.
The Japanese economy was facing the biggest problems with factors that could affect the economy like the aging society and sinking birthrate, radiation, unpopular and seemingly powerless government. Besides those economic problems there are also various social problems that Japan had to put an end, problems like domestic and child abuse. In addition to that, this was also the year when the country was shaken by a chaotic natural disaster.
After a few years, Japan’s economy only grew worse, but it was dedicated to restoring its economy that has been drowning in deflation and decay for the past 20 years, it was these years that the living standards have steadily declined resulting to the capital income today are 10% below the level of 1990.
Problems like low productivity, a shrinking and aging work force which added to the massive government debt was believed to be the reason why the growth of its economy was so constricted.
Japan’s Troubles Today
The consumer, spending has struggled, due to the 2014 increase of 3% in Japan’s value-added tax, The VAT is yet to increase another 2% this year 2017 and this is to cope with its enormous government debt and in order to help push the country’s GDP. The value of the yen has declined by approximately 30% since 2012.