Japanese economy crashes as western economies tumble

BBC reported that the Japanese economy shrank by its quickest pace for the first three years for 2009 since records began due to a slump in exports caused by the downturn in the global economy.

 

“Output in the world’s second largest economy contracted by 4% during the period, or by 15.2% on an annual basis.” 

The current downturn has in fact exposed the very weak nature of Japans economy as it highlights the vulnerability of having an export led economy which depends on exports as a primary source of growth.

 We have come to realise that during the boom period the Western world consumed much of what come of the production lines of South East Asia, now that spending is being cut back – as many spent beyond their means during the bubble, Japan is finding that a problem that started on the other side of the world has dragged it down too.  

 Whilst Japan continues to be cited as a model to imitate, the fact that will never change is Japan will always be reliant upon the greed and consumption of the West to drive its economy.