Japan’s Economy Will Rise Again

Japanese economy will continue to rise under a new economic model

By Lindsey Addawoo

With one of the largest economies in the world, Japan has been making remarkable progress in recovering its economy. Japan’s GDP has risen by a whopping 0.9 per cent in the last three months, and it has seen a lowering in its national deflation.

Japan’s economic model, affectionately called “Abenomics” in honour of current Prime Minister Shinzo Abe, was set in motion last December when Abe was re–elected into office. According to The Economist, some of Abe’s stimulus measures involve an increase in individual consumer spending, as well as government spending.

[pullquote]Abe’s stimulus measures involve an increase in individual consumer spending, as well as government spending.[/pullquote]

However, though some may question how steady this model will be, there is one thing Abe can be sure of – though the value of Japanese currency may result in a weaker yen under this economic model, it will raise international exports – something Japan so desperately depends on.

So far under Abe’s government, the Japanese stock market (Nikkei 225) has risen by roughly 45-55 per cent. He has yet to release the details of his economic mandate.

Many believe Abe is not only good for the Japanese economy, but also for Japan’s socio-cultural and national identity. His administration continuously refers to national security as its economic mantra. As Abe’s “fiscal stimulus and monetary easing” formally involve his economic doctrine, his administration also perpetuates the Meiji slogan fukoku kyohei (enrich the country, strengthen the army). Clearly Abe has more than an economic agenda in mind.

In fact, many might note that this intricate tie of economics, national identity and even politics is poignant in Japan’s history.

Courtesy of kylehase

Japan has had long withstanding success in both areas of political and economic rise. Under a closed, state-run bureaucracy, Japan held both political and economic stability many would deem as necessary for a chance at economic boom post-WWII. For four decades (from the 1950s to the early 1990s), Japan achieved growth rates of up to 10 per cent per year.

This may seem dull in comparison to Japan’s growth of just one per cent last year, but for a country that essentially had to “catch up” with other developed countries, the importance of their central bank system and business-government cooperation became less and less crucial as the country reached financial stability. Perhaps a shift away from the intertwinement of a central banking system and the state into a more equitable, laissez-faire new enterprise may be the small step back into the right direction that Japan has been waiting for.

Lindsey Addawoo is a fourth year Radio and Television Arts student at Ryerson University. She has written for various student publications, such as The Ryerson Free Press and Mcclung’s Magazine. Her ultimate goal is to become a multi-faceted news journalist in both print and TV broadcasting.