Japan is graduating from the developed country sequence, and this is not an exaggeration at all. The Japanese economy is rapidly declining.
From the establishment of G7 until now, Japan's economy has always been among the top except for the years of the Great Depression. However, after 2012, Japan has gradually declined and is now at the bottom.
Japan is currently in an irreversible decline. Let's take a look at the data together. The International Monetary Fund ranks 40 countries and regions as developed economies based on their level of economic development. Before 2012, Japan ranked 13th, and now it is 27th.
In the past decade, Japan has been declining every year, and its per capita purchasing power has even fallen short of that of our Taiwan province. The reason why Japan's economy is so serious is because former Prime Minister Abe implemented Abenomics, commonly known as loose monetary policy, which has had a significant effect. Since then, Japan's exchange rate has continued to depreciate, which has also driven a decline in per capita GDP.
In fact, there was opposition within Japan at that time, but at that time, Abe did not see the situation clearly and only wanted to use loose monetary policy to stimulate economic growth. Indeed, currency depreciation is beneficial for exports, but it also depends on what is being exported. Cars, high-precision equipment, and It products were once Japan's main exports, with the two largest importers being China and the United States. However, with the rise of China's high-end manufacturing industry and the rise of the concept of carbon neutrality, Japan's exports have been severely damaged. In addition, starting from 2019, chip sanctions were implemented against the United States, and the products and equipment were not sold. As a result, no one wants to sell them now, but no one has bought them, If the devaluation of the currency has not stopped and exports are still severely damaged, then it is natural for the economy to decline.