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Japan

Author

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  • George Cornel Dumitrescu

Abstract

The economic activity in Japan evolved in 2016 under its potential, but remained in the positive growth territory in all four quarters, being supported by the 2015 and 2016 additional budgets and increase in industrial production and domestic demand. The economic situation improved slightly in 2016, spurred by an upsurge in gross fixed investment and trade surplus, as a result of increased export competitiveness. However, Japan faces severe challenges due to its ratio of gross government debt to GDP and labour supply shortage, generated by demographic decline and aging population. Lack of confidence in fiscal sustainability could affect the financial sector and the real economy, with spillover effects at the regional and global level, given that in 2017 and 2018 gross government debt continues its upward trend.

Suggested Citation

  • George Cornel Dumitrescu, 2017. "Japan," Conjunctura economiei mondiale / World Economic Studies, Institute for World Economy, Romanian Academy, pages 96-103.
    • Handle: RePEc:iem:conjun:y:2017:p:96-103
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