John D.’s Post

Did you know that Japan, the third largest economy in the world was sent into a period known as "lost decades" due to various factors? But, to it's good news, it is seen to be recovering! Through this post, I have highlighted the factors responsible for the dark economic era for Japan, how it is seen to be recovering and the factors shaping its recovery along with insights into the future of Japan's economy.

A very interesting chart.

🚀🇯🇵 *Japan's Economy Glow-Up! 📈💥* Did you hear? Japan's shaking off its economic slumber and stepping into some new shoes! Prices 📊? Up! Wages 💵? Also up! Stock market 📈? You guessed it - booming! 🤔 After decades of economic standstill, it's like Japan woke up and chose growth. Prime Minister says it's a "historic opportunity" to ditch deflation for good. 🎉 📉 Remember the days when Japan was the exception to every economic rule? Well, those days might be just a quirky memory soon. Inflation and wage increases are making a comeback, folks! 💡 But it's not all cherry blossoms and smooth sailing. There are still some big challenges ahead. Yet, the vibe is hopeful. Could this be the dawn of a "normal" economy for Japan? 👀 Keep an eye on this space. Japan's economic makeover might just be the inspiration we all need. #JapanEconomy #EconomicGrowth #Inflation #WageIncrease #StockMarketBoom

A very interesting chart which shows some important trends. First, one does see how the US managed to claw back the last decade. Love it or hate it but innovation and growth remains powered by the States. One also sees the dramatic fall of Japan. I remember well the fear in the 90’s that Japan would overtake us all. It did not happen but fair to say the country has now its act back together and remains a super important economy. The growth rate of China has been just amazing the last two decades. Big question is where the country is heading now, though I remain bullish mid/long term. Countries and regions to watch are of course India and some countries in the Middle-East, like the Gulf States and KSA. But the sad story is around the EU. Yes we still have a lot of innovative companies, but unless we move away from our sclerotic economic policies we are heading towards economic and therefore political irrelevance.

Japan's economy contracted by -0.4% on an annualized basis in the fourth quarter, officially entering a recession. This downturn led to Japan losing its status as the world's third-largest economy, with Germany surpassing it. The data suggests that negative interest rates, a monetary policy approach Japan has employed, are not sufficient to address the broader economic challenges. The shift in rankings and economic contraction indicate the need for a more comprehensive strategy to stimulate growth and overcome economic difficulties. 📊📊📈📉📈📊

The Land of the Rising Sun is on a roll! Japan, the globe's titan of industry, has seen its economy surge by a whopping 6% on an annualized basis in the second quarter, which is so far ahead of expectations! While the pessimists forecasted a lackluster rise of 0.8% for the quarter, Japan refused to keep the status quo, demonstrating an impressive economic growth of 1.5% in the second quarter. The secret sauce behind Japan's triumphant growth: the auto industry. Cars, cars everywhere, racing out of Japan onto roads worldwide. The country's exports roared a powerful 3.2% ahead of the 1st quarter. Even the most vivacious economies eventually need a breather. Just like the US, Japan's rocket-like growth is expected to flatten in the second half of this year. #japan #economy #recession #business #news #money #government #investing

In 2023, Germany surpassed Japan in terms of nominal GDP. So, let's look at figures of ASEAN. Its GDP size is more than that of 90% of Japan. Taiwan GDP is larger than Kansai (greater Osaka) region. Both Singapore and Hong Kong are larger than Osaka prefecture (data unshown). This may come from FOREX magic but slow start up growth, decades long consensus oriented corporate culture prevent Japan from growth and changes. So, do whatever we can do.

The world loves criticising the economy of Japan. - They point to its slow growth rate. - Low Inflation. - Low stock market & real estate returns. But, if you meet Japanese people. Or spend time with them, you will understand the concept of slow living. And, why their economy works best for them. Japan has an ageing population. They can't keep up with the drama of constantly investing their money to chase higher returns. Would old people live their life/focus on their health or go through the drama of constantly beating inflation? They don't print crazy money. And, this keeps their inflation (and also the growth rate low). The incentive to spend in Japan is really low (so the consumption goes down, and reflects poorly in the economy stats). Why? because they have created a self-sufficient economy, where their net imports are off-set by their exports. In simple words: unlike most of the world, the Japanese did NOT create an artificial growth (or created very little of it). They are focused on helping their elders, consuming mindfully and leaving in peace. #economy #japan #artificialgrowth

📌 Recently, Japan lost its crown as World's third largest economy to Germany 📌 Japan slips into recession because of weak domestic consumption 📌 A recession is typically defined as two consecutive quarters of economic contraction #MBA #curiosity #Japan #Germany #news #business #market #marketing #gdp #knowledge #world #economy

The weak yen is a double-edged sword for Japan's economy. While it has led to a surge in tourism, as evidenced by the increase in tourists visiting Japan, the Japanese people have not reciprocated by traveling abroad due to their weak currency. This situation could potentially boost inflation and help the economy, as highlighted in this Financial Times graph.