Japan, also called the Land of the Rising Sun, is a relatively small island nation located in the Pacific. The country is located on an archipelago, for which a mountainous terrain is typical. The main islands are: Kyushu, Honshu, Hokkaido and Shikoku. The population density is significant because 126 million people are concentrated in a small area. Now it is the tenth place in the world. However, the population is gradually declining, which is reflected in the economy of this state.
Economy
In short, the Japanese economy is one of the most developed in the world. It is in the third or fourth place in terms of GDP. Characteristic is the high standard of living of the population, in stark contrast to the small size of Japanese apartments. Japan is sadly different from other countries in that it is the only country in the world that has experienced the use of nuclear weapons.
Japanese money is the yen.
Geographic features
Japan is located in very difficult natural conditions. It is separated from the mainland, a significant part of the area is occupied by mountains. The Japanese archipelago is located in a zone of seismic and tectonic instability, which often damages both the economy and people's lives. The accident at the Fukushima-1 nuclear power plant had an extremely negative impact on the economic and environmental well-being of the country.
Another disadvantage is the climatic features. Typhoons and tropical hurricanes drop by here often, often causing destruction and economic damage. Japan has few minerals, especially fuels, which this country is forced to import. The lack of free space limits the possibilities for the development of renewable energy, and the construction of new nuclear power plants after the 2011 accident is not carried out. The advantage is the large expanses of ocean areas where fish and seafood are harvested.
Among the minerals in the bowels of Japan, sulfur is the leader.
Attitude to ecology
The Japanese economy is developing in close conjunction with the environment. After a surge of pollution in the 50-60s of the 20th century, starting in 1970, the country has been stubbornly moving towards abandoning dirty technologies and improving the quality of the environment. The top priority is energy efficiency. This is also due to the fact that the country has few own fuel resources. Honda and Toyota have been improving their products for a long time, making cars less dependent on fossil fuels. The country is committed to reducing greenhouse gas emissions.
Economic indicators
In a nutshell, Japan ’s economy is developing steadily, demonstrating annual GDP growth and the development of high technology. The inflation rate in this country is minimal and rarely exceeds 1% per year. The reverse process is often observed - deflation. The country's GDP growth is about 1% per year. Unemployment is gradually decreasing and in 2018 fell to 2.5%. Banks of Japan correspond to the level of highly developed countries.
Production
In Japan, the mining sector is underdeveloped, and output with high added value prevails. In the first place - cars and spare parts for them. This direction is traditional for Japan, and the quality of the products meets recognized standards. Japanese cars also feature durability. Production was especially profitable until the 90s. 20th century, and then competition intensified, first with the United States, and then with Asian countries, especially with China. Now in the Chinese automotive industry, the introduction of new technologies is faster than in the Japanese. They are more actively switching to electric cars, constantly improving their characteristics. Japan has traditionally focused on fuel-efficient gas engines, having achieved great success in this matter. This is especially true for cars of the Japanese Toyota brand, which has become famous throughout the world for the production of fuel-efficient ICEs and was considered the standard for environmentally friendly transport. Now electric cars are considered the most environmentally friendly, and Japan is far from the leader in this direction.
A major role is played by the production of household and computer equipment, microcircuits, and equipment. Quite developed are metallurgy and the chemical industry, including the production of petroleum products.
Agriculture
Agriculture in Japan is gradually declining, and the territory is built up with houses and industrial enterprises. In the 21st century, the share of rice in crops decreased sharply, while wheat crops increased.
Trade
If we talk briefly about the Japanese economy, this country has important trade relations with the United States, China, South Korea, and Australia.
However, now the situation with the export of Japanese products is rather unfavorable. This is due to growing competition from China and partly from Europe and the USA. Japanese products are more expensive than competitors. This is due to a shortage of raw materials, fuel, space and high salaries of employees. Therefore, the country's GDP growth is very slow, but the situation is stable. And the presence of a trend towards deflation motivates people to accumulate money, which reduces purchasing activity.
Pros and cons of Japan's economy briefly
The positive aspects include:
- advanced technologies;
- safety margin and high standard of living of people;
- production and worldwide sale of high quality and high added value products.
Cons are:
- large public debt compared to GDP;
- weak domestic consumer demand (supply sharply dominates);
- deflation and excessively high wages;
- lack of own resources that have to be imported;
- age structure of the population.
The country's authorities are trying to reduce the negative impact of negative factors on the Japanese economy, but so far the measures taken do not radically change the situation, and public debt is only growing. This is reflected in the budget of Japan.