Japan's economic growth after the 1940s was based on unprecedented expansion of industrial production and the development of an enormous domestic market, as well as on an aggressive export trade policy.
With a more educated population, Japan's industrial sector grew significantly. Implementing the Western ideal of capitalism into the development of technology and applying it to their military helped make Japan into both a militaristic and economic powerhouse by the beginning of the 20th century.
Japan's Postwar Miracle
The devastated Japanese economy rose quickly from the ashes of World War II. By 1956, real per capita GDP had overtaken the prewar 1940 level. During the recovery period (1945–56), per capita GDP rose at an average annual rate of 7.1%. Recovery was followed by the era of rapid growth era.
During the 1980s, the Japanese economy shifted its emphasis away from primary and secondary activities (notably agriculture, manufacturing, and mining) to processing, with telecommunications and computers becoming increasingly vital. Information became an important resource and product, central to wealth and power.
Payments of reparations started in 1955, lasted for 23 years and ended in 1977. For countries that renounced any reparations from Japan, it agreed to pay an indemnity and/or grants in accordance with bilateral agreements.
After the defeat of Japan in World War II, the United States led the Allies in the occupation and rehabilitation of the Japanese state.
In the early 1990s, as it became apparent that the bubble was about to burst, the Japanese Financial Ministry raised interest rates, and ultimately the stock market crashed and a debt crisis began, halting economic growth and leading to what is now known as the Lost Decade.
Japan is one of the largest and most developed economies in the world. It has a well-educated, industrious workforce and its large, affluent population makes it one of the world's biggest consumer markets.
Japan's population structure was shifting and becoming increasingly elderly. Aging meant slower growth of the labor force. Declining fertility combined with aging eventually reduced the domestic saving that supported economic expansion during the rapid economic growth period.
The Japanese economy survived from the deep recession caused by a loss of the U.S. payments for military procurement and continued to make gains. By the late 1960s, Japan had risen from the ashes of World War II to achieve an astoundingly rapid and complete economic recovery.
The first official Japanese economic white paper, published in 1956, declared that the “postwar era” was over. Devastated Japan now finally successfully recovered by 1955. As can be seen in this graph, Japan's per capita GDP, which had fallen to half the pre-war level, returned to the pre-war level by 1955.
After the second atomic bomb was dropped, Japan surrendered and left a large mess to clean up throughout the Pacific theater. To help aid in the process, the United States set up a form of government in Hiroshima to help rebuild the city and give jobs to the people who were struggling to find work.
Australia has a highly developed market economy and one of the highest per capita incomes globally. Australia is a regional power, and has the world's thirteenth-highest military expenditure.
Japan had the best army, navy, and air force in the Far East. In addition to trained manpower and modern weapons, Japan had in the mandated islands a string of naval and air bases ideally located for an advance to the south.
Japan has a HDI rank of 17th determined by its $US 36,332 GDP per capita whereas Australia's HDI rank is 2nd and has a GDP per capita of $US 61,219. These rankings and GDPs are determined by Japans 0.933 HDI, 83.6 age life expectancy and 11.5 mean years of education.
WEAKNESSES. Rapidly ageing population. Reduction of the workforce and low immigration contribution, increasing share of precarious workers. Difficulty in fiscal consolidation and reversal of deflationary pressures. Low growth potential, low productivity of SMEs.
Supply chain issues, rising labor costs, and political issues have highlighted problems with Japan's reliance on China as a base for its manufacturing investments. With a low birthrate and aging population, Japan's social security system is under strain and is suffering from labor shortages.
TOKYO, May 17 (Reuters) - Japan's economy emerged from recession and grew faster than expected in the first quarter as a post-COVID consumption rebound offset global headwinds, shoring up hopes for a sustained recovery.
In Japan, the term Lost Generation refers to those who had the bad luck to graduate during the “employment ice age” of the 1990s and 2000s—after the collapse of the 1980s asset-price bubble—when companies sharply curtailed their annual recruitment of permanent employees.
Japan's "Lost Decade" was a period that lasted from about 1991 to 2001 that saw a significant slowdown in Japan's previously bustling economy. The economic slowdown was caused, in part by the Bank of Japan (BOJ) hiking interest rates to cool down the real estate market.
The Soviet Union suffered the highest number of fatalities of any single nation, with estimates mostly falling between 22 and 27 million deaths. China then suffered the second greatest, at around 20 million, although these figures are less certain and often overlap with the Chinese Civil War.
Reparations amounting to US$200 million (72 billion yen) were made to Burma, and US$223.08 million (80.3088 billion yen) to Indonesia. The Soviet Union waived its rights to reparations from Japan, and both Japan and the Soviet Union waived all reparations claims arising from war.
For Germany, in constant 2005 dollars the United States provided a total of $29.3 billion in assistance from 1946-1952 with 60% in economic grants and nearly 30% in economic loans, and the remainder in military aid.