It is probably safe to say that global recession affects us all, but I would have never thought that one of Asia’s powerhouses could be in trouble. Yet Japan is in big trouble, its economy is in downward spiral due to declining export levels.
Japan is one of market leaders in electronics, cars and IT technologies so one might think that the added high value would be enough to stabilize the economy. But actually we forgot one thing – during a global economic crisis the spending habits op people change. Simply said if people do not receive as much money as before and unemployment is a constant scare then they will not spend money on fancy things such as; high end electronics and cars. The only enterprises that may feel somewhat safe in an economic crisis are the food producers because people will always eat no matter how big the crisis is. So because of this simple fact Japan’s economy is in such a bad position.
And then there is another cause of Japan’s recession – USA economy and market. In this world everything is connected. USA domestic market is the main target of Japan export and as long as USA economy will be in trouble Japan will have problems as well. We might go even one step further and say that global economic crisis is the main cause of USA economy recession and vice versa that USA economy caused the global economic crisis. Well one might add that there are still the European markets and Asian domestic markets, but the economic situation is quite similar in the whole world. People just cannot afford to spend money on exclusive goods. Surviving the economical crisis is the main objective. Thankfully the latest analytic reports tend to show that the recession in USA has come to a halt and that is good news not only to Japan, but also the whole world.
Does this mean that global economic crisis is over? Most definitely no! But it is a ray of hope in these dark times and everything is better than nothing.
