Japan GDP
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GDP or gross domestic product which is also known as gross domestic income (GDI), is a measure of national income and output of a country’s economy. It is total market value of all final goods and services produced in a period of time.
Japan’s economy is second largest after US. As of 2006, Japanese workers ranked #18 in world as far as GDP per hour figures were concerned. Japanese economy is very diversified, efficient, and competitive. In productivity, it ranks #19 among 111 nations. Major long run problems of Japan include heavy government debt which is 182 percent of GDP and a aging population.
According to 2007 estimate, Japanese GDP (purchasing power parity) was nearly $ 4.272 trillion, and GDP (official exchange rate) was around $4.384 trillion. Real growth rate of GDP was about 2 percent according to 2007 estimates. GDP per capita was estimated to be around $33,500. Agricultural sector accounted for 1.4 percent of total GDP; industry contributed 26.5 percent to total GDP, while service sector comprised a mammoth 72 percent to Japan’s gross domestic product.
Between1991-1999, Japan’s GDP grew at an average rate of 1.5 percent annually, compared to about 4 percent annual rate in 1980’s. In 1990’s, growth was slow like in all major industrial nations. In nineties, GDP per worker increased steadily with 10 percent of population distribution moving from working age to elderly age.
Organization for Economic Cooperation and Development expects Japan’s first-quarter GDP to increase by 0.3 percent in 2008. It was predicted that there will be a rise of 0.2 percent in second quarter of same year. In 2005, GDP growth was 2.8 percent, with a 5.5 percent rate expansion in fourth quarter. It surpassed growth rates of European Union and US in same period.
But in recent times, GDP is falling faster due to global recession. According to earlier reports, Japan’s economy is shrinking at an annualized rate of 0.4 per cent. But latest reports show economy is shrinking at 1.8 per cent rate annually. Both real and nominal GDP are low, which confirms that Japan is going through recession. In July-September 2008, Japanese economy shrank 0.5 percent more than preliminary 0.1 percent decrease. Japan’s economy has contracted three times faster than US economy.
