Japan, once the world's third-largest country in terms of GDP, released the latest economic data, and its GDP fell by 0.5% month-on-month in the first three months, or 2% on an annualized basis.
For some time, unscrupulous scholars have been bullish on the Japanese economy. The yen exchange rate has fallen, and many traitor economists have touted Japan in the next big game of chess, using the exchange rate decline to promote exports, but it is a pity that Japan's import and export is a processing trade, and after importing resources, they are processed into high-end products for export for profit, and the local area is extremely short of raw materials and energy. Although the yen exchange rate has decreased, it has not reduced the cost of exports. The decline in Japan's macroeconomic data is clear.
The depreciation of the yen has attracted many people to travel and many speculators to buy luxury goods, but it has not boosted the growth of Japan's economy as a whole. Actions speak louder than words. The former third largest country in the world has now been surpassed by Germany in terms of GDP. In the near future, it is very likely to be surpassed by India. It is not possible for a country's economy to rely on playing with currency exchange rates without engaging in specific industrial upgrading. And Japan's recent purchases of US Treasury bonds have still increased substantially, which indeed makes people admire his loyalty to the United States.