The Japanese create goods and services worth more than $5 trillion a year. The average annual income per capita is approximately $44,000. This indicator ranks 24th in the world and is ahead of Italy, Saudi Arabia, Spain, and other prosperous countries worldwide (Hedrick-Wong, 2020). The country’s high level of prosperity is also indicated by the Japanese’s high life expectancy globally.
Japan’s rapid economic development began after World War II. In 1945, it was a war-torn, bombed-out, demoralized, economically crisis-ridden country with half of its workforce employed in agriculture. Japan was not distinguished by its invention and creation of its new technologies (Tan, 2021). Instead, it was based on technologies imported from other countries and, in some cases, produced better results than the technology-creating countries themselves.
Today, most of the Japanese economy comes from the service sector, including industry and agriculture. Thus, the economic miracle has shifted people employed in agriculture to industry and the service sector. Generally, this result would not have happened without an increase in the level of education. Since the 1950s, all Japanese have attended school. As a result, the number of people with higher education has increased, proving that education is the power of solid economic standing. Furthermore, technological directions were popular because there were more chances of employment in Japan. In the end, Japan performed a revelation and managed to become the second most economically powerful country in the world after the United States, after being a politically and financially bankrupt country for 25 years.
Compared to other countries worldwide, Political risks in Japan are low. So the factor that Japan is going to have unprecedented external debts is deficient. As of now, Japan’s main problem is represented by falling tax revenues and poor investment returns.
Page Author: Nano Jikhaia
