The economy in Japan is considered the biggest worldwide according to its nominal gross domestic product (GDP) and the fourth largest according to purchasing power parity (PPP). The Japanese economy is the 28th highest in the world in terms of per capita GDP in 2014 by $37,519, according to the International Monetary Fund.
The economic freedom in Japan is well preserved with its government. In order to prevent economic stagnation, they extend their best efforts in making reforms that challenge long-established cultural and economic interests.
Trade is essential to the Japanese economy, the total imports and exports of Japan are equal to 37 percent of GDP. The average practiced tariff quota is 1.2 percent.
The leading corporate tax quota is 40.8 percent in Japan’s government, while the top personal income tax quota is 23.9 percent. The summation of their tax burden is 30.3 percent of total domestic income. For the past three years, the Japanese government spent about 39.9 percent of total output for their economy.
Despite the propelling exports in global trades and the decline of yen, 2016 was considered a good year for the Japanese economy. The expanding industrial production and promising retail sales of Japan fed its economy, which is growing from time to time.
Progress has been slow in this country due to its priorities to boosting the economy rather than strengthening it.
Will Abenomics Work?
There are speculation’s that 2017 will be a good year for the country’s economy as the government looks forward in creating reforms to help fortify consumption. Despite President Donald Trump’s trade and economic policies, they government seeks to urge slow consumption.
Their government lessened the corporate tax quota from 32.11 percent to 29.97 percent for this economic year this coming March.
Shinzo Abe made a fiscal policy mix known as Abenomics when he was proclaimed as Japan’s prime minister in December 2012. This policy urges corporate leaders to lift their wages. The Abenomics turned out to be a success, driven by the rising prices.