Japan’s Prime Minister Shinzo Abe is in the midst of an economic reset.
No doubt Japan’s a cornerstone in global trade. Japan has the world’s third largest economy at $4.73 trillion (in GDP terms) trailing only the US and China.
Japan is an industrial powerhouse that during the halcyon 70s earned the moniker Japan Inc., as the island nation’s manufactured products – particularly autos - flooded world markets. The export oriented drive made a lot of economic sense as a means of ratcheting up the nation’s GDP, offsetting inherent lack of natural resources and emphasizing the abundance of human resources – a massive workforce.
In many respects, Japan’s success as an “export oriented” economy made it a model for nearly all Asian nations and even the West to emulate. China and South Korea also used exports as the basis for building their economies. And now nearly all of Southeast Asia has followed suit.
But times have changed. Since the 2008 Great Recession (although it can be argued the seeds of the slow down were already well sowed) Japan’s economy has been tepid in the best of years.
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