Before reading this article, please click "Follow", and you can point out the editor's final impression of the article in the comment area, thank you for your advice and support.
This neighboring country, the economy suddenly exploded?
Perhaps our image of Japan is still stuck in the "lost decade," but now the country seems to have taken an important step forward in the economic field, which is shocking.
Japan, once a land of deflation, is now revitalizing. And all this is not accidental, but built on a solid foundation behind a series of data. As of April 1, 2023, the employment rate of recent college graduates in Japan reached 97.3%, a figure that did not reach the peak of 98% in 2018 and 2020, but rose 1.5% year-on-year, marking the first increase in three years. What is even more surprising is that in 2022, the average monthly salary of full-time workers in Japan reached a record high, reaching 311,800 yen, equivalent to 15,300 yuan. Meanwhile, the consumer price index rose 4.2% year-on-year in January 2023, the highest since 1981, while in July 2023, the CPI grew by 3.1% year-on-year, exceeding the 2% target set by the Bank of Japan for 16 consecutive months.
These figures come as a surprise, especially given Japan's long history of deflation. In August, the Japanese government also announced that GDP growth in the second quarter reached an annualized rate of 6%, exceeding economists' expectations. Although it has since been corrected, it has exceeded the growth rate in the first quarter. This series of data shows that Japan seems to have emerged from a long period of deflation and recession.
However, it remains to be seen whether all this can be sustained. After all, Japan's economic growth is largely dependent on external demand, while domestic spending remains relatively weak. Although average wages have risen, they have not risen enough to keep up with the rate of price increases, leading to a decline in real wages. As a result, the Japanese government has taken a number of initiatives aimed at promoting sustainable wage growth and mitigating the impact of inflation.
It is worth mentioning that Japan is also actively attracting domestic and foreign investment, especially in the semiconductor field. These measures show that the Japanese government is actively responding to economic challenges and trying to achieve a balance between domestic and external demand to ensure sustainable economic growth.
Overall, Japan's economic performance is encouraging, but it will take time to verify its sustainability. The economic rise of this neighboring country is undoubtedly a shocking story, and we look forward to seeing how it continues to grow.