The Japanese economy has attracted attention after the Second World War, when it has gained the rapid growth. The radical economical and political reforms have given a real impetus to the revival of the economy and the country as a whole. Then, this phenomenon was called Japanese Economic Miracle.
After 300 years of self-isolation Japan has made enormous efforts in order to modernize its economy, society and industrialization on its path to the modern economic development. The country owes its success to a high rate of capital investments, as well as low wages, forced export of its products and a lack of large military expenditures. In addition, the close relationship between manufacturers, suppliers and distributors, and also the guarantee of the lifetime employment for a significant portion of the urban population have made a positive contribution.
Today Japan’s economy is one of the most developed economies in the world. It ranks the third place among the countries of the world (after the US and China) in terms of GDP and the volume of industrial production. The country is famous for its high technology (electronics and robotics), transport machinery, including the vehicle manufacturing, shipbuilding, machine tools.
Private consumption leads to the increase of GDP. Economic growth of the country is explained by the low unemployment, zero interest rates and the promotion of investment by the government. The New Economic Policy includes measures of mitigating of monetary and fiscal policy. It is possible to make the assumption that this will lead to the acceleration of economic growth and the positive inflation over the coming years (in the previous years, the country experienced deflation). However, the high level of public debt is still a serious risk factor.