Another evil consequence of the depreciation of the yen is that Japan's total GDP will continue to fall, and next year it may really not be able to compare with India, which has really depreciated more and more in the past two years. So far, many people have said that in just three years, we can say that the yen has depreciated by nearly 30% against the US dollar and the yen against the yuan.
So that many luxury stores on the streets of Osaka, Tokyo today are full of crowded crowds, many foreign consumers say that it is too appropriate to buy luxury goods in Japan today, it is like a 20% discount and a 7% discount, especially the Japanese are very fond of luxury goods, so the supply of all kinds of luxury goods is still very complete, but I am afraid that you will not be able to eat long during the bonus period, because luxury goods are priced globally.
Today, due to the exchange rate, the price in Japan is particularly low, and I am afraid that the major luxury brands will adjust the price in the next step. At that time, not only will foreigners not buy from Japan, but locals will find it difficult to buy luxury goods.
Therefore, as we said, the continuous depreciation of the exchange rate, although on the surface it will not have an impact on the lives of the people in China, but in the long run, the people of the country will definitely experience this kind of price surge.
For example, in the past two years, Japan has gone from deflation to inflation, but this is not a good thing for Japan, because Japan has a large number of people's biological resources, such as flour and beef, which are imported from overseas, and the yen continues to depreciate against the dollar, so the price of almost everything in Japanese supermarkets will rise next.
There is no way, you have to spend more money on imports, and this price will eventually be passed on to consumers, and do you know? According to the IMF's calculations, there will soon be a bad consequence of the depreciation of the yen, that is, Japan's total GDP is really not even comparable to India's.
Modi said a while ago that India's GDP has come to the top 5 in the world during his ten years in office, surpassing his former suzerain, the United Kingdom, and Modi said that if he is given another 5 years, he can lead India's economy to the top three in the world, surpassing Japan.
At the time of Modi's bold remarks, Japan's economy was still the third largest in the world, but last year, due to the depreciation of the yen and the decline of the domestic economy, Japan's total GDP has fallen behind Germany and has become the fourth in the world.
According to IMF estimates, by next year, that is, in 2025, India's total GDP will not surpass Germany, but it will surpass Japan to become the fourth in the world, and Japan will be squeezed into the fifth place in the world.
Think about it, ten or twenty years ago, Japan was the world's second largest GDP, and it stayed in this position for a long time, Japan's per capita GDP was even more than twice that of the United States at that time, and the Japanese clamored to sell the land in Tokyo to buy the entire United States.
But in just ten or twenty years, Japan has been surpassed by the mainland and Germany, and next year it will be surpassed by India, and Japan's per capita GDP is now only half of the United States, which is about 4 times behind the United States, and the yen continues to depreciate, will Japan's GDP fall out of the top 5 in the world?