NY Times report:
Japan’s economy, the world’s second largest, is deteriorating at its worst pace since the oil crisis of the 1970s, hurt by shrinking exports and anemic spending at home.
It does not necessarily mean that people have no money, rather, the fact that, people are not spending.
The fourth-quarter results were Japan’s worst quarterly drop since its economy contracted at an annual pace of 13.1 percent in the first three months of 1974. Japan’s export-driven economy is particularly vulnerable to the current downturn.
"Export Driven" economies are based on two factors:
- Others will have enough money to buy yours
- Focusing more on providing for others, rather than your own needs
When the economic problems loom, export economies are the first to break down. And Japan's problems is good news for others, since that means that they are no longer transfer money to Japan.
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