Japan ranks 4th, yen weakens, loss of momentum Germany ranks 3rd, Park Chung-hee model ‘ends’

Japan ranks 4th, yen weakens, loss of momentum Germany ranks 3rd, Park Chung-hee model ‘ends’

 

Japan, which enjoyed economic growth during the Cold War, fell from second place after the United States to fourth place, losing out to Germany due to the long-term weakness of the yen, and was imminent to overtake India's total productivity, concretizing the loss of the support system before and after World War II, Park Chung-hee's growth model formula took shape.
Japan's gross domestic product (GDP) fell 3.3% in the fourth quarter of last year and an annualized decline of 0.4%.
Last year, Japan's nominal GDP was $4.2 trillion (591 trillion yen), and Germany's currency announced last month was $4.4 trillion, depending on conversion, surpassing Japan's.
Japan's Ministry of Finance data was released on the 14th, completely overturning analysts' previous predictions of a '1.4% increase' and falling into a technical recession caused by economic contraction for two consecutive quarters.

Korea's GDP growth rate of 1.4% last year was 0.5 percentage points lower than Japan's growth rate of 1.9%, overtaking Japan.
Regarding the reversal in Korea-Japan economic growth rates, the Nippon Keizai Shimbun said, "Structural problems (of the Korean economy), not one-offs such as the semiconductor recession, have begun to emerge," and "The Bank of Korea is saying that the potential growth rate is not rising due to low birth rates, aging, and declining productivity and competitiveness." He stated on the 14th, “The view that Korea has also entered a period of low growth has increased.”
Tetsuji Okazaki, professor of economics at the University of Tokyo, said of Germany's overtaking Japan, "The latest data reflects the reality of a weakening Japan, and as a result, Japan's presence in the world will weaken. Just a few years ago, Japan had a strong automobile sector." “We boasted of this, but with the advent of electric vehicles, even that advantage is being shaken,” he told AP.
Regarding the international economy, Professor Tetsuji said, “The gap between developed and emerging countries is narrowing, and India is certain to overtake Japan in nominal GDP within a few years.”
AP said, “Both Japan and Germany have built their economies through solid productivity and strong small and medium-sized businesses. Unlike Japan, Germany has shown a solid economic foundation thanks to the strong euro and inflation, and the weak yen has a negative effect on Japan.”14 The day was revealed.
As China's economy grew, Japan fell from the second largest economy in the world, following the United States, to the world's third largest economy in 2010. The International Monetary Fund (IMF) predicted that Japan would fall to fourth place.
Japan has slipped to the world's fourth-largest economy in 2023, with the country falling behind Germany in size, according to government data released Thursday.
The figures highlight that Japan's economy is becoming increasingly uncompetitive and productive, while its population is shrinking as Japanese people age and have fewer children, analysts say.
As China's economy grew, Japan fell from 2nd place in economic size to 3rd place in the world after the United States in 2010. The International Monetary Fund (IMF) had previously predicted that Japan would fall to 4th place, but this time it lost 3rd place to Germany and fell to 4th place. did.
“What is especially noticeable is the slump in consumption and capital spending, which are key pillars of domestic demand,” Shinke Yoshiki, chief economist at Daiichi Life Research Institute, told Reuters. “The economy will continue to lack momentum for the time being without a key driver of growth.” revealed.
The Japanese yen fell to its lowest level on this day, exceeding the 150 yen per dollar range, but recovered to 150.22 yen after Economic Minister Yoshitaka Shindo announced that “a solid wage increase must be achieved” to support consumption that has been pushed back by rising prices.
“It is bad news that GDP has declined for the second time in a row and domestic demand has declined for the third time in a row,” Stephen Enrick, senior economist at Moody’s Analytics, told Reuters. “Revisions could change the final figures.”
When asked about the impact of BOJ (Bank of Japan) policy at a press conference after the release of price index data last week, U.S. Federal Reserve Chairman Powell said, "The BOJ comprehensively looks at various data, including risks to consumption and the economy, when leading monetary policy." “I know,” he said, emphasizing ‘consumption.’
The Japanese economic downturn resulted in a 0.2% decline in private consumption, which accounts for more than half of economic activity, and the gap with the market forecast of a 0.1% increase was too large.
Regarding Japan's sharp slump in consumption, Reuters said, "This is because households are reluctant to eat out and buy winter clothes due to the rising cost of living due to rising prices and warm weather."
Capital expenditures for private sector growth also decreased by 0.1%, which is the result of a worsening construction economy due to supply constraints, and the original market forecast was ‘0.3% increase’.
The only growth was in exports, which increased by 2.6% compared to the previous quarter, and the trade surplus contributed 0.2%p to GDP, showing the export-led economy.
“The second consecutive contraction in GDP in the fourth quarter suggests that the Japanese economy is currently in recession,” said Marcel Tilliant, head of Asia Pacific at Capital Economics. “Business surveys and the labor market show a different outlook, but the household savings rate “Because it has turned negative, the growth of the Japanese economy will be sluggish this year,” he told Reuters.
Governor Tilliant said, “The BOJ (Bank of Japan) has maintained that private consumption has ‘continued to increase moderately,’ and is expected to maintain an optimistic tone at the upcoming March meeting,” adding that the Bank of Japan will implement a ‘negative interest rate policy’ in April. The previous outlook of ‘end’ was maintained.
Japan, which grew rapidly under the US security umbrella economic model in the post-war Cold War system, attempted to achieve low inflation and high growth through a bureaucrat-led command economy by applying the regeneration model of ‘security is the US, economic cooperation is Japan’ under the Park Chung-hee regime.

Yoon Seok-yeol's regime is attempting to return to high growth through low wages by restoring Park Chung-hee's model to the 'security-U.S.-economic cooperation-Japan' system, but the high inflation system is first revealed in the twin deficits of the fiscal deficit and trade deficit due to the enlarged debt economy.