Custom term paper on An assessment of the current phase of economic growth in Japan

The current situation in Japanese economy can be characterized as recession or contraction, when the economy is still in decline. The national economy and GDP were in decline for four consecutive quarters in 2008 and 2009 and it is only recently, the economy has started to revive and business activities can stimulate the growth of the GDP rate but, as it has been already mentioned above, this growth is still uncertain.
As for the major factors that have determined the current contraction phase in the development of Japanese economy, specialists (Shigemi, et al., 2001) point out that the modern economy of Japan is highly dependent on the situation in international markets. This is why the economic recession that started in the US expanded worldwide and affected Japan. At this point, it is worth mentioning the fact that Japanese economy is an export-oriented economy. As a result, the decrease of consumption in the US and other countries naturally led to the downfall of production in Japan because local companies lost their market or decreased their sale rates. Consequently, the national economy started to stumble and the economic recession struck in 2009 affecting practically all industries and the national economy at large. In addition, the economy of Japan faced the problem of the over-production which aggravated negative effects of the international economic crisis. custom term paper
Furthermore, the situation is deteriorated by the growing public debt of Japan. Today, the public debt of Japan exceeds 160% of GDP, where as its public deficit remains one of the worst among developed countries of the world. In such a situation, the government needs to undertake effective measures to encourage the rise of the national economy. In this respect, it is possible to recommend cut of state spending and maximization of the effectiveness of functioning of the national economy. The latter can be stimulated through the decrease of interest rates and stimulation of financial sector of the national economy. In this regard, the government should cooperate with the central bank of Japan to stimulate business activities.
Thus, in conclusion, it should be said that the development of Japanese economy is characterized by contraction after the consistent downfall of the GDP of Japan in 2009. The current downfall of the national economy is unparalleled and the most significant in the last 20 years. In such a situation, Japanese economy needs the state support and stabilization of the situation in international markets to recover after the recession.

References:
Bank for International Settlement, (2010). Quarterly Review.
Cargill, T. F. and S. Royama (1988). The Transition of Finance in Japan and the Untied States: A Comparative Perspective, Stanfford, Ca: Hoover Institution Press.
Shigemi, Y., et al. (2001). “Market Participants” Behavior and Pricing Mechanisms in the JGB Markets, Working Paper 01-E-1, Financial Markets Department Bank of Japan.