The Economy of Japan is characterized by low overall taxation^[1] and overwhelmingly private sector economy compared to most Western countries^[1], high economic freedom, close government-industry cooperation for economic growth, emphasis on science and technology, and strong work ethic. Official Development Assistance (ODA is a category of Development aid. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been Economic freedom is freedom to produce trade and consume any goods and services acquired without the use of force fraud or theft For the government of parliamentary systems see Executive (government. For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" Work ethic is a set of values based on the moral virtues of hard work and diligence Extraordinary relationship-based - rather than productive - arrangements in the financial sector and employment, along with relatively shallow international competition in domestic markets, are among widely acknowledged causes behind the protracted lost decade in the 1990s. ^[2][1] Slowly progressing reforms took pace in the mid-2000s and higher growth rates were seen after 2005. Japan's economy is the world's third-largest, adjusted to purchasing power parity (PPP), after the United States and People's Republic of China. There are three lists of Countries of the world sorted by their Gross domestic product (GDP (the value of all final goods and services produced within a nation The purchasing power parity ( PPP) theory uses the long-term equilibrium Exchange rate of two currencies to equalize their Purchasing power. The United States of America —commonly referred to as the Talk People's Republic of China) PEOPLE'S REPUBLIC OF CHINA ARTICLE GUIDELINES Also, Japan is the world's second-largest economy by real GDP, nominal GDP and by market exchange rates. Sao Paulo Stock Exchangejpg|thumb| Virtual market arena where buyer and seller are not present and trade via intemediates and electronical information In Finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how

Distinguishing characteristics of the Japanese economy include the cooperation of manufacturers, suppliers, distributors, and banks in closely-knit groups called keiretsu; tendency to protectionism; the powerful enterprise unions and shuntō; cozy relations with government bureaucrats, and the guarantee of lifetime employment (shushin koyo) in big corporations and highly unionized blue-collar factories. A is a set of companies with interlocking Business relationships and shareholdings. For the protectionist Australian political party from the 1880s to 1909 see Protectionist Party is a Japanese term usually translated as "spring offensive" with the word "wages" sometimes substituted with livelihood labour or similar term has been the rule in big Japanese companies beginning with the first economic successes in the 1920s A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming Recently, Japanese companies have begun to gradually move away from some of these norms in an attempt to increase their global competitiveness and profitability (the latter due mostly to their increased reliance on equity rather than debt financing). Japan's economy is highly efficient and competitive in areas linked to international trade. Productivity is lower in areas such as agriculture, distribution, and services. Productivity in Economics refers to measures of output from production processes per unit of input Japan has well-educated and industrious work force, high savings and investment rates. Overall taxation as a percentage of GDP was 26. 4% in 2007, less than any major Western country. Less than half of employees pay income tax at all and value-added tax is very low at 5%, albeit corporate tax rates are high. Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. ^[1]

For three decades, Japan's overall real economic growth had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Japanese post-war economic miracle is the name given to the historical phenomenon of Japan's record period of economic growth following World War II, spurred ^[3]

Sliding stock and real estate prices marked the end of the "bubble economy" of the late 1980s, and ushered in a decade of stagnant economic growth. Japanese post-war economic miracle The was an Economic bubble in Japan from 1986 to 1990 in which Real estate and Stock prices greatly inflated These problems may have been exacerbated by domestic policies intended to wring speculative excesses from the stock and real estate markets. Real GDP in Japan grew at an average of roughly 1. 5% yearly between 1991-1999, compared to growth in the 1980s of about 4% per year. Growth in Japan throughout the 1990s was slower than growth in other major industrial nations, and the same as in France and Germany. This article is about the country For a topic outline on this subject see List of basic France topics. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. Government efforts to revive economic growth have met with little success and were further hampered in 2000 to 2001 by the slowing of the global economy. ^[4] However, GDP per worker has increased steadily even through the nineties, given that from 1993 to 2007, 10% of the population distribution moved from the "working age" to "elderly age".

Starting in 2003 Japan's economy began to recover, growing at 2. 0% per year in 2003 and 2004, and 2. 8 percent in 2005. Unlike previous recovery trends, domestic consumption has been the dominant factor in leading the growth. As predicted, the economic recovery continued in 2006 and 2007. Former Prime Minister Shinzo Abe, who was working on Japan's economic revival, signed a treaty with Saudi Arabia and UAE about the rising prices of oil. The Kingdom of Saudi Arabia, KSA ( المملكة العربية السعودية, al-Mamlaka al-ʻArabiyya as-Suʻūdiyya) or Suudi An oil is a substance that is in a viscous Liquid state ( "oily") at ambient temperatures or slightly warmer and is

The Japanese economy began to see signs of trouble again in 2008. In January, Ota Hiroko, the Minister of State for Economic and Fiscal Policy, announced that Japan's economy can no longer be considered a 1st class economy due to a number of facts including: a decline in the country’s per capita gross domestic product, resulting in the fall of Japan's GDP per capita to 18th among the 30 member nations of the Organization for Economic Cooperation and Development (OECD) in 2006 and the reduction of Japan’s share of aggregate world income to below 10% for the first time in 24 years. ^[5][6][7]

Given its heavy dependence on imported energy, Japan has aimed to diversify its sources. Since the oil shocks of the 1970s, Japan has reduced dependence on petroleum as a source of energy from more than 75% in 1973 to about 57% at present. Other important energy sources are coal, liquefied natural gas, nuclear power, and hydropower. Demand for oil is also dampened by higher government taxes on automobile engines over 2000 cc, as well as on gasoline itself, currently 54 yen per liter sold retail. Kerosene is also used extensively for home heating in portable heaters, especially farther north. Many taxi companies run their fleets on liquefied gas with tanks in the car trunks. A recent success towards greater fuel economy was the introduction of mass-produced Hybrid vehicles. Fuel economy in automobiles is the amount of Fuel required to move the Automobile over a given Distance. A hybrid vehicle is a vehicle that uses two or more distinct power sources to propel the vehicle

Deposits of gold, magnesium, and silver meet current industrial demands, but Japan is dependent on foreign sources for many of the minerals essential to modern industry. Iron ore, coke, copper, and bauxite must be imported, as must many forest products. Iron ores are rocks and Minerals from which Metallic Iron can be economically extracted Coke is a solid Carbonaceous material derived from Destructive distillation of low-ash low-sulfur Bituminous coal. Copper (ˈkɒpɚ is a Chemical element with the symbol Cu (cuprum and Atomic number 29 Bauxite is the most important Aluminium Ore. It consists largely of the minerals Gibbsite Al(OH3 Boehmite γ-AlO(OH and

Natural resources

A mountainous, volcanic island country, Japan has inadequate natural resources to support its growing economy and large population. A mountain is a Landform that extends above the surrounding Terrain in a limited area with a peak An island country is a Country that is wholly confined to an Island, several islands an Island group or several island groups and has no territory on Natural resources are naturally occurring substances that are considered valuable in their relatively unmodified ( natural) form Although many kinds of minerals were extracted throughout the country, most mineral resources had to be imported in the postwar era. Local deposits of metal-bearing ores were difficult to process because they were low grade. The nation's large and varied forest resources, which covered 70 percent of the country in the late 1980s, were not utilized extensively. A forest is an area with a high density of Trees There are many definitions of a forest based on various criteria Because of the terrain, underdeveloped road network, and high percentage of young trees, domestic sources were only able to supply between 25 and 30 percent of the nation's timber needs. Agriculture and fishing were the best developed resources, but only through years of painstaking investment and toil. The nation therefore built up the manufacturing and processing industries to convert raw materials imported from abroad. This strategy of economic development necessitated the establishment of a strong economic infrastructure to provide the needed energy, transportation, communications, and technological know-how.

Macro-economic trend

Trend of Historical value of Japanese Yen

This is a chart of trend of gross domestic product of Japan at market prices estimated by the International Monetary Fund with figures in millions of Japanese Yen. See also [2]

For purchasing power parity comparisons, the US Dollar is exchanged at ￥125. 16.

Agriculture and fishery

Main article: Agriculture, forestry, and fishing in Japan

Agriculture

Rice is a very important crop in Japan as shown here in a rice paddy in Autumn, Kurihara, Miyagi prefecture. Agriculture forestry and fishing form the Primary sector of industry of the Japanese economy, together with the Japanese mining industry, but together

Only 12% of Japan's land is suitable for cultivation. Due to this lack of arable land, a system of terraces is used to farm in small areas. This results in one of the world's highest levels of crop yields per unit area, with an overall agricultural self-sufficiency rate of about 50% on fewer than 56,000 km² (14 million acres) cultivated.

Japan's small agricultural sector, however, is also highly subsidized and protected, with government regulations that favor small-scale cultivation instead of large-scale agriculture as practiced in North America. Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture

Imported rice, the most protected crop, is subject to tariffs of 490% and was restricted to a quota of only 7. Rice is a Cereal foodstuff which forms an important part of the diet of many people worldwide and as such it is a staple food for many 2% of average rice consumption from 1968 to 1988. Imports beyond the quota are unrestricted in legal terms, but subject to a 341 yen per kilogram tariff. This tariff is now estimated at 490%, but the rate will soar to a massive 778% under new calculation rules to be introduced as part of the Doha Round. The Doha Development Round is the current trade-negotiation round of the World Trade Organization (WTO which commenced in November 2001 ^[8]

Although Japan is usually self-sufficient in rice (except for its use in making rice crackers and processed foods) and wheat, the country must import about 50% ^[9] of its requirements of other grain and fodder crops and relies on imports for most of its supply of meat. In modern English usage meat most often refers to Animal tissue used as food mostly Skeletal muscle and associated Fat, but it may also refer Japan imports large quantities of wheat, sorghum, and soybeans, primarily from the United States. Wheat ( Triticum spp is a worldwide cultivated grass from the Levant area of the Middle East. Sorghum is a genus of numerous species of grasses, some of which are raised for grain and many of which are used as Fodder plants either cultivated or as part The United States of America —commonly referred to as the Japan is the largest market for EU agricultural exports. Apples are also grown, mostly in Tohoku and Hokkaidō; Pears and Oranges are mainly grown in Shikoku and in Kyūshū. The is a geographical area of Japan. Tōhoku is Japanese for "northeast" and the Tōhoku region occupies the northeastern portion of Honshū WikipediaWikiProject Japanese prefectures for guidelines --> formerly known as Ezo, Yezo, Yeso, or Yesso, is Japan 's is the smallest (225 km long and between 50 and 150 km wide and least populous (4141955 as of 2005 of the four main islands of Japan, located south of Honshū or Kyushu is the third-largest Island of Japan and most southwesterly of its four main islands. Pears and Oranges were first introduced by Dutch traders, in Nagasaki in the late 18th century. ( is the Capital and the largest city of Nagasaki Prefecture in Japan.

Fishery

Japan ranked second in the world behind the People's Republic of China in tonnage of fish caught—11. 9 million tons in 1989, up slightly from 11. 1 million tons in 1980. After the 1973 energy crisis, deep-sea fishing in Japan declined, with the annual catch in the 1980s averaging 2 million tons. Offshore fisheries accounted for an average of 50 % of the nation's total fish catches in the late 1980s although they experienced repeated ups and downs during that period

Coastal fishing by small boats, set nets, or breeding techniques accounts for about one third of the industry's total production, while offshore fishing by medium-sized boats makes up for more than half the total production. Deep-sea fishing from larger vessels makes up the rest. Among the many fish species caught are sardines, skipjack tuna, crab, shrimp, salmon, pollock, squid, clams, mackerel, sea bream, saury, tuna and Japanese amberjack. For the hide and seek-like game see Hide and seek. Sardines, or pilchards, are a group of several types of small Oily The skipjack tuna, Katsuwonus pelamis, is a medium-sized Perciform fish in the Tuna family Scombridae. Crabs are decapod Crustaceans of the infraorder Brachyura, which typically have a very short projecting "tail" (βραχύ / brachy True shrimp are swimming decapod Crustaceans classified in the Infraorder Caridea, found widely around the world in both fresh Salmon is the common name for several species of Fish of the family Salmonidae. Pollock (or pollack, pronounced the same and listed first in most UK and US dictionaries is the common name used for either of the two Species of marine Squid are marine Cephalopods of the order Teuthida, which comprises around 300 species Clam is a word which can be used for all some or only a few Species of Bivalve Mollusks the word is a Common name which has Mackerel is a common name applied to a number of different species of Fish, mostly but not exclusively from the family Scombridae. The Sparidae is a family of Fish, included in the order Perciformes. Sauries are fish of the family Scomberesocidae. There are two genera, each containing two species Tuna, are several Species of ocean-dwelling Fish in the family Scombridae, mostly in the genus Thunnus. The Japanese amberjack or yellowtail, Seriola quinqueradiata, is a Fish in the family Carangidae.

Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch ^[10], prompting some claims that Japan's fishing is leading to depletion in fish stocks such as tuna. For the computer security term see Phishing. Fishing is the activity of catching Fish. Fish are aquatic Vertebrate animals that are typically ectothermic (previously Cold-blooded) covered with scales, and equipped with two Tuna, are several Species of ocean-dwelling Fish in the family Scombridae, mostly in the genus Thunnus. ^[11] Japan has also sparked controversy by supporting quasi-commercial whaling. Japan has a long history of Whaling. However current whaling conducted by Japan is a source of Political dispute between pro- and anti-whaling ^[12]

Industry

Main article: Manufacturing industries of Japan

The nation's industrial activities (including mining, manufacturing, and power, gas, and water utilities) contributed 46. Japan's major export industries include Automobiles Consumer electronics (see Japanese consumer electronics industry) Computers, Semiconductors Mining in Japan was a rapidly declining industry in the 1980s 6% of total domestic industrial production in 1989, up slightly from 45. 8 percent in 1975. This steady performance of the industrial sector in the 1970s and 1980s was a result of the growth of high-technology industries. During this period, some of the older heavy industries, such as steel and shipbuilding, either declined or simply held stable. Heavy industry does not have a single fixed meaning as compared to Light industry. Together with the construction industry, those older heavy industries employed 34. In Japan, the mainstay of Infrastructure development is the Construction industry, which employed 9 9% of the work force in 1989 (relatively unchanged from 34. 8 percent in 1980). The service industry sector grew the fastest in the 1980s in terms of GNP, while the greatest losses occurred in agriculture, forestry, mining, and transportation. Most industry catered to the domestic market, but exports were important for several key commodities. In general, industries relatively geared toward exports over imports in 1988 were transportation equipment (with a 24. 8 percent ratio of exports over imports), motor vehicles (54 percent), electrical machinery (23. 4 percent), general machinery (21. 2 percent), and metal products (8. 2 percent).

Industry is concentrated in several regions, in the following order of importance: the Kantō region surrounding Tokyo, especially the prefectures of Chiba, Kanagawa, Saitama and Tokyo (the Keihin industrial region); the Tōkai region , including Aichi, Gifu, Mie, and Shizuoka prefectures (the Chukyo-Tokai industrial region); Kinki (Kansai), including Osaka, Kyoto, Kobe, ( the Hanshin industrial region); the southwestern part of Honshū and northern Shikoku around the Inland Sea (the Setouchi industrial region); and the northern part of Kyūshū (Kitakyūshū). The is a Geographical area of Honshū, the largest Island of Japan. officially, is one of the 47 prefectures of Japan and located on the eastern side of the main island Honshū. WikipediaWikiProject Japanese prefectures for guidelines--> is a prefecture of Japan located in the Greater Tokyo Area. WikipediaWikiProject Japanese prefectures for guidelines --> is a prefecture of Japan located on the island of Honshū. The Keihin region ( keihin chihō 京浜地方 consists of the Japanese cities Tokyo, Kawasaki, and Yokohama. The is a sub-region of the Chūbu region in Japan that runs along the Pacific Ocean. WikipediaWikiProject Japanese prefectures for guidelines --> is a prefecture of Japan located in the Chūbu region. WikipediaWikiProject Japanese prefectures for guidelines--> is a prefecture located in the Chūbu region of central Japan. WikipediaWikiProject Japanese prefectures for guidelines --> is a prefecture of Japan which is part of the Kinki and Chūbu regions WikipediaWikiProject Japanese prefectures for guidelines--> is a prefecture of Japan located in the Chūbu region on Honshū Island The Chūkyō Industrial Area ( Chūkyō Kōgyō Chitai 中京工業地帯 is another name for the Chūkyō Metropolitan Area and the surrounding prefectures which The or the lies in the southern-central region of Japan 's main island Honshū. is a city in Japan, located at the mouth of the Yodo River on Osaka Bay, in the Kansai region of the main island of Honshū (IPA /kʲoːto / is a city in the central part of the island of Honshū, Japan. is the capital city of Hyōgo Prefecture and a prominent port city in Japan with a population of about 1 The is one of the largest Industrial regions in Japan. Its name comes from the Kanji used to write the names of Osaka (大阪 and Kobe (神戸 or Honshu is the largest Island of Japan. The nation's main island, it is south of Hokkaidō across the Tsugaru Strait, north of is the smallest (225 km long and between 50 and 150 km wide and least populous (4141955 as of 2005 of the four main islands of Japan, located south of Honshū An inland sea is a shallow Sea that covers central areas of continents during high stands of Sea level that result in marine transgressions In modern days or Kyushu is the third-largest Island of Japan and most southwesterly of its four main islands. is a city located in Fukuoka prefecture, Kyūshū, Japan. It is midway between Tokyo and Shanghai. In addition, a long narrow belt of industrial centers is found between Tokyo and Fukuoka, established by particular industries, that have developed as mill towns. officially, is one of the 47 prefectures of Japan and located on the eastern side of the main island Honshū. is the capital city of Fukuoka Prefecture and is situated on the northern shore of the island of Kyūshū in Japan, across

The fields in which Japan enjoys relatively high technological development include semiconductor manufacturing, optical fibers, optoelectronics, optical media, facsimile and copy machines, and fermentation processes in food and biochemistry. A semiconductor' is a Solid material that has Electrical conductivity in between a conductor and an insulator; it can vary over that An optical fiber (or fibre) is a Glass or Plastic fiber that carries Light along its length Optoelectronics is the study and application of electronic devices that source detect and control Light, usually considered a sub-field of Photonics. Fax (short for facsimile, from Latin fac simile, "make similar" i A photocopier (or copier is a machine that makes Paper copies of documents and other visual images quickly and cheaply Fermentation in Food processing typically refers to the conversion of Sugar to Alcohol using Yeast under Anaerobic conditions Fermentation is the process of deriving energy from the oxidation of organic compounds such as carbohydrates using an endogenous electron acceptor which is Japan lags slightly in such fields as satellites, rockets, and large aircraft, where advanced engineering capabilities are required but they made headway through their aerospace exploration agency, JAXA with possible manned independent mission to moon, and in such fields as computer-aided design and computer-aided manufacturing (CAD/CAM), and databases, where basic software capabilities are required, and natural resources exploitation, due to the lack of them. This article is about artificial satellites For natural satellites also known as moons see Natural satellite. A rocket or rocket vehicle is a Missile, Aircraft or other Vehicle which obtains Thrust by the reaction of the The, or JAXA, is Japan's national Aerospace agency JAXA was formed on October 1 2003 as an Independent Administrative Institution through the CAD/CAM refers to integration of Computer-aided design (CAD and Computer-aided manufacturing (CAM systems during product development

Services

The Tokyo Stock Exchange is the second largest in the world with market capitalization of more than $4 trillion. The, or TSE, located in Tokyo, Japan, is the second largest Stock exchange market in the world by market value second only to the New York Stock

Japan's service sector accounts for about three-fourths of its total economic output. Banking, insurance, real estate, retailing, transportation, and telecommunications are all major industries such as Mitsubishi UFJ, Mizuho, NTT, TEPCO, Nomura, Mitsubishi Estate, Tokio Marine, JR East, Seven & I, ANA counting as one of the largest companies in the world. A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money Insurance, in Law and Economics, is a form of Risk management primarily used to hedge against the Risk of a contingent loss Real estate is a legal term (in some jurisdictions notably in the USA, United Kingdom Transportation in Japan is modern and infrastructure spending has been large () or MUFG, is a Japanese Bank headquartered in Tokyo Japan. It holds an Asset of around US$1 abbreviated as MHFG, or simply called Mizuho is a Banking Holding company headquartered in the Ōtemachi district of Chiyoda Tokyo commonly known as NTT, is a telephone company that dominates the Telecommunication market in Japan. also known as or TEPCO, is an Electric utility servicing Japan's Kantō region, Yamanashi Prefecture, and the eastern portion of Shizuoka Prefecture Nomura Holdings Inc () (野村ホールディングス株式会社 is a Japanese financial holding company ( is a Japanese corporation It is one of the core Mitsubishi companies is a Japanese insurance company based in the Marunouchi area of Chiyoda in Tokyo Japan. is the largest passenger railway company in the world and one of the seven JR companies is a diversified Retail group headquarterd in Tokyo, Japan. Founded originally in 1920 as Ito Yokado, Seven & I is now the fifth largest retailer also known as or ANA, is an airline headquartered in Minato, Tokyo, Japan. The Koizumi government set Japan Post, one of the country's largest providers of savings and insurance services for privatization by 2014. is a Japanese politician who served as Prime Minister of Japan from 2001 to 2006 was a public corporation in Japan, that existed from 2003–2007 offering postal and package delivery services banking services and life insurance The six major keiretsus are the Mitsubishi, Sumitomo, Fuyo, Mitsui, Dai-Ichi Kangyo and Sanwa Groups. A is a set of companies with interlocking Business relationships and shareholdings. The, Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese conglomerate consisting of a range of autonomous businesses which share the Mitsubishi is one of the largest Keiretsus ' founded by Masatomo Sumitomo. is a Japanese Keiretsu. The group emerged after World War II as a continuation of the Yasuda zaibatsu. is one of the largest corporate conglomerates ( Keiretsu) in Japan and one of the largest publicly traded companies in the world The or the Dai-Ichi Kangyo Group is the largest Japanese Keiretsu. Japan is home to 326 companies from the Forbes Global 2000 or 16. The Forbes Global 2000 is an annual ranking of the top 2000 Public companies in the world by Forbes magazine 3% (as of 2006).

Labor force

Unemployment rate of Japan

In 2001, Japan's labour force consisted of some 67 million workers—40% of whom were women—and was rapidly shrinking. [3] Labour union membership is about 12 million. The unemployment rate is currently 4. 1%. In 1989, the predominantly public sector union confederation, SOHYO (General Council of Trade Unions of Japan), merged with RENGO (Japanese Private Sector Trade Union Confederation) to form the Japanese Trade Union Confederation.

One major long-term concern for the Japanese labour force is a low birthrate. Crude birth rate is the natality or Childbirths per 1000 people per year In the first half of 2005, the number of deaths in Japan exceeded the number of births, indicating that the decline in population, initially predicted to start in 2007, had already started. While one countermeasure for a declining birthrate would be to remove barriers to immigration, the Japanese government has been reluctant to do so. Immigration refers to the movement of people among countries While the movement of people has existed throughout human history at various levels modern immigration implies long-term

As of July 2006, the unemployment rate in Japan is 4. 1%, according to the OCDE.

see also: Labor market of Japan

Current economic issues

The Koizumi administration, which held office until 2006, enacted or attempted to pass (sometimes with failure) major privatization and foreign-investment laws intended to help stimulate Japan's dormant economy. The structure of Japan's labour market was experiencing gradual change in the late 1980s and was expected to continue this trend throughout the 1990s is a Japanese politician who served as Prime Minister of Japan from 2001 to 2006 Although the effectiveness of these laws is still ambiguous, the economy has begun to respond, but Japan's aging population is expected to place further strain on growth in the near future. ^[13]

Heterodox economists tend to claim that Japan's economy is far stronger than genarally believed. Heterodox economics refers to the approaches or schools of economic thought, that are considered outside of mainstream, that is orthodox economics ^[14] Some mainstream economists acknowledge that Japan, which unlike most Western countries has maintained its industrial base, and has vast capital reserves, currently has a strong economic outlook.

The privatization of Japan Post, the Japanese postal system which also runs insurance and deposit-taking businesses, is a major issue. was a public corporation in Japan, that existed from 2003–2007 offering postal and package delivery services banking services and life insurance Mail, or post, is a method for transmitting information and tangible objects wherein written Documents typically enclosed in Envelopes and also A political battle over privatization caused a political stalemate in August, 2005, and ultimately led to the dissolution of the Japanese House of Representatives. The is the Lower house of the Diet of Japan. The House of Councillors of Japan is the Upper house. The Postal Savings deposits, which have until now been used to fund public works projects, many of which have had questionable economic value, stands in excess of 1. 9 trillion U. S. dollars, and could be a major force in energizing the private sector.

The decline in the Japanese population as a result of a low birthrate threatens the long-term economic vitality of Japan. A higher percentage of elderly in the population will put pressures on the pension system, and will ultimately force a higher burden on the current generation of laborers. Old age consists of ages nearing or surpassing the Average life span of Human beings and thus the end of the human life cycle. Pension systems in various countries Canada Pension Plan Chile pension system Superannuation in Australia

The Japanese monetary authorities' continued desire to depress the price of yen relative to other key specific currencies to protect domestic business from imports may no longer be feasible. The most recent record intervention in 2003 amounted to over 17 trillion yen, more than one third of one trillion US dollars at the time and nearly 3% of Japan's 2003 GDP, being sold in favor of other non-yen denominated assets. The dollar (often represented by the Dollar sign: "$" is the name of the official Currency in several countries dependencies and other However, since 2005, Japan has not directly intervened to buy currency, as yen carry trade has effectively carried out the same task. The carry of an Asset is the return obtained from holding it (if positive or the Cost of holding it (if negative

Interestingly, international trade has expanded by 60% from 91. 4 trillion yen to 142. 6 trillion yen from 2001 to 2006, but the size of GDP has barely budged. However, taking in account the economic participation rate, Japan's GDP per worker has increased steadily.

The Organization for Economic Cooperation and Development downgraded its economic forecasts on March 20, 2008 for the Japan for the first half of 2008. Events 1600 - The Linköping Bloodbath takes place on Maundy Thursday in Linköping, Sweden. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Japan does not have room to ease fiscal or monetary policy, the 30-nation group warned. For Japan, the OECD said the pace of underlying growth appears to be softening despite support from buoyant neighboring Asian economies. The organization expects first-quarter GDP to be up 0. 3 percent and predicts a rise of 0. 2 in the second quarter. [4]

Post-war economic history

Japanese exports in 2005

From the 1960s to the 1980s, overall real economic growth has been called a "miracle": a 10% average in the 1960s, a 5% average in the 1970s and a 4% average in the 1980s. Japanese post-war economic miracle is the name given to the historical phenomenon of Japan's record period of economic growth following World War II, spurred ^[15] Growth slowed markedly in the late 1990s, 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. Japanese post-war economic miracle The was an Economic bubble in Japan from 1986 to 1990 in which Real estate and Stock prices greatly inflated Because the Bank of Japan failed to cut rates quickly enough, Japan entered a liquidity trap. In Monetary economics, a liquidity trap occurs when the nominal Interest rate is close or equal to zero and the Monetary authority is unable To keep its economy afloat, Japan ran massive budget deficits to finance large public works programs. By 1998, Japan's public works projects still could not stimulate demand enough to end the economy's stagnation. In desperation, the Japanese government undertook "structural reform" policies intended to wring speculative excesses from the stock and real estate markets. Unfortunately, these policies led Japan into deflation on numerous occasions between 1999 and 2004. In his 1998 paper, Japan's Trap, Princeton economics professor Paul Krugman argued that based on a number of models, Japan had a new option. Paul Robin Krugman ( born February 28 1953 is an American Economist, Columnist, Author, and Intellectual. Krugman's plan called for a rise in inflation expectations to, in effect, cut long-term interest rates and promote spending. ^[16] Japan used another technique, somewhat based on Krugman's, called Quantitative easing. Quantitative easing was a tool of Monetary policy that the Bank of Japan used to fight Deflation in the early 2000s. As opposed to flooding the money supply with newly printed money, the Bank of Japan expanded the money supply internally to raise expectations of inflation. Initially, the policy failed to induce any growth, but it eventually began to effect inflationary expectations. By late 2005, the economy finally began what seems to be a sustained recovery. GDP growth for that year was 2. 8%, with an annualized fourth quarter expansion of 5. 5%, surpassing the growth rates of the US and European Union during the same period. The economy of the European Union combines the economies of 27 member states and is generating an estimated nominal GDP of € 12581 billion ( $ ^[17] Unlike previous recovery trends, domestic consumption has been the dominant factor of growth.

Japan is the top export market for almost 15 trading nations worldwide.

Other economic indicators

Industrial Production Growth Rate: 3. 3% (2006 est. )

Investment (gross fixed): 100% of GDP (2006 est. )

Household income or consumption by percentage share:

• Lowest 10%: 4. 8%
• Highest 10%: 21. 7% (1993)

Agriculture - Products: rice, sugar beets, vegetables, fruit, pork, poultry, dairy products, eggs, fish

Exports - Commodities: machinery and equipment, motor vehicles, semiconductors, chemicals

Imports - Commodities: machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials (2001)

Exchange rates:
Japanese Yen per US$1 - 100. In Finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how 320 (2008) 109. 690016 (2005), 115. 933 (2003), 125. 388 (2002), 121. 529 (2001), 105. 16 (January 2000), 113. 91 (1999), 130. 91 (1998), 120. 99 (1997), 108. 78 (1996), 94. 06 (1995)

Electricity:

• Electricity - consumption: 946. 3 billion kWh (2005)
• Electricity - production: 996 billion kWh (2005)
• Electricity - exports: 0 kWh (2003)
• Electricity - imports: 0 kWh (2003)

Electricity - Production by source:

• Fossil Fuel: 56. 68%
• Hydro: 8. 99%
• Nuclear: 31. 93%
• Other: 2. 4% (1998)

Electricity - Standards:

• 100 volts at 50 Hz from the Oi River (in Shizuoka) Northward;
• 100 volts at 60 Hz Southward

Oil:

• production: 125,000 bbl/day (2006)
• consumption: 5. The volt (symbol V) is the SI derived unit of electric Potential difference or Electromotive force. WikipediaWikiProject Japanese prefectures for guidelines--> is a prefecture of Japan located in the Chūbu region on Honshū Island The volt (symbol V) is the SI derived unit of electric Potential difference or Electromotive force. 578 million bbl/day (2005)
• exports: 93,360 barrel/day (2001)
• imports: 5. 449 million barrel/day (2001)
• net imports: 5. 3 million barrel/day (2004 est. )
• proved reserves: 59 million bbl (1 January 2006)

See also

• Japanese post-war economic miracle
• Quantitative easing

Notes