Tokyo : Record performances posted by Japan, the world’s third largest economy, has grabbed the attention of the world. Since the start of 2016, Japan’s economic growth rate has been on the rise, a feat achieved for the first time in more than a decade. With a growth rate of 4 percent, Japan has outperformed all other members of the ‘G7’. While the economies of the US, China and Europe continue to be in a slowdown, Japan’s performance is being perceived as a much needed relief for the global economy.
According to the information provided by the Japanese Government, Japan has been successful in maintaining a high growth rate for the quarter of April to June 2017. The rate of growth in this quarter is 4 percent more as compared to the entire financial year, which is a record for the Japanese economy. After about a decade, the Japanese economy has been successful in recording a growth for almost one and a half year at a stretch. The last time Japan managed to maintain a constant rise in the rate of economic growth for more than a year was way back in 2005-06.
As the global economy continues to provide signs of a slowdown, the performance of the third largest economy of the world has been noteworthy. This success is being attributed to the economic policies advocated by Prime Minister Shinzō Abe since the December 2012 general election, popularly referred to as ‘Abenomics’. Abenomics is based upon the “three arrows” of monetary easing, fiscal stimulus and structural reforms.
Initially, Abenomics was criticised as being beneficial only to the share market and increasing profits of the big companies. However, the numbers achieved five years later point towards a positive return. Strong performance of the economy for six straight quarters has clearly resulted from an increase in demand and the rise in the buying power of the Japanese people.
A growth of 3.7 percent has been recorded in private consumption, corporate spending on factories and equipment jumped 10 percent and public investment has increased by 22 percent. According to various economic experts, these factors point towards a sustainable growth of the economy rather than a temporary one. This record breaking performance has resulted in the GDP of Japan growing up to 4.97 trillion USD.