Your Outlook for the Economy of Japan or Your Home Country over the Next 2-5 Years, and the Reasons for Your Assessment.

Give your outlook for the economy of Japan or your home country over the next 2-5 years, and the reasons for your assessment.

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In the past recent years, Japan has been experiencing difficulties to sustain economic growth and to resist the shrinking of GDP. It is uncharacteristic for a country that its economy was once regarded as the fastest growing economy that nobody will see any other country matching such a success given the global economic downturn situation. How is Japan going to be like in the next 2-5 years remain largely a question not only to the Japanese citizens, but also international stakeholders who had already invested heavily in Japan, both directly in Japan and in offshored Japanese companies. This essay will walk you through the history and devise the past happening to give you a forecast of what is going to happen in the short-to-middle term from now.

The Japanese economy, as we all have known empirically, depends largely on consumption from a consumer-level than a corporate level; and it is the prior that drives the latter. Some regards the spending culture of the Japanese society as consumerism and so many theorists went on to explain the growth phenomenon of Japan based on such term. Most of the published figures on purchasing power parity and spending per capita (and also spending per average household income) illustrate the consumerism economy of Japan quite well. As a country with more than 120 million population, one may think that Japan can totally be dependent on domestic consumption without having to rely much or heavily on inflows of funds from selling export goods, provided that it reaches the export target set forth by the government every year, in-which they always exceed it. However, since the number of population began to saturate or slightly shrink from 1990s, Japan is faced with slow growth, fluctuations, and recessions as happened elsewhere in the world. This largely affects the trust of the society that as a result, citizens not only spend lesser and lesser as it gets more difficult. The fear of population problem that correlates to less spending does not stop there. The Japanese society is quickly becoming an aged society where it will have fewer workers; less people who would earn money to finance themselves. The society will have more kids and elder citizens, both of which require financial care from another source, namely the government. Regardless of strong government policies to solve the situation (i.e. using