Since the Fukushima nuclear disaster triggered by the giant tsunami that hit Japan in 2011, the country has gone through a difficult transition as a developed country and as one of the global economic leaders. As of 2012, Japan had the third highest GDP in the world but placed as the top nation with the greatest deficit in its national budget.
Several primary factors have brought about the present economic challenges of Japan in relation to the global market which used to be its primary source of its wealth, if not its virtual playground, from the 1960’s to the 1980’s. Here are the reasons for its economic woes at present.
1. Decrease in consumer confidence
Almost every country that experiences a calamity suddenly undergoes a period of depression, both economic-wise and socially. That is an obvious result to such devastating causes that can disrupt the natural, political and social environment, as well the human infrastructure needed for the delivery of essential public and private services. Business activity slows down as well as the consumption of non-essential goods. People prefer to save whatever resources they have for their daily survival needs.
As things improve, however, as they must have already done so in the interim in Japan, people might become more upbeat. Other factors, nevertheless, complicate the situation, as we can glean from the other factors that continue to challenge Japanese society.
2. Unbalanced Demographics
Japan, not unlike many developed ...