Impact Of Economic Growth On The Economy Of Japan

The economy of Japan over the last few decades has had a series of highs and lows. Japan’s post-war growth, due mostly to extremely successful car and consumer electronics industries, was pretty much over by the 1990s. This, combined with the post-war Japanese baby boom and later on drop in fertility rates has led to a significant macroeconomic impacts. Demographic changes have heavily influenced savings, investment, and inward streaming revenue. Policymakers created key errors while struggling to swing the structure of their balance sheets. Economic growth in Japan has been predicted to reach 1.0% in 2017 before slowing down to 0.8% in 2018. At the moment fiscal consolidation (a policy aimed at reducing government deficits and debt accumulation) has stopped, which should aid Japan in dealing with the impact of the appreciating yen. Though there has been a decline in business investment, private consumption is still adding to economic growth. 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