• During the second half of the 1980s, rising stock and real estate prices created an economic

bubble. The economic bubble came to an abrupt end as the Tokyo Stock Exchange crashed in
1990–92 and real estate prices peaked in 1991. Growth in Japan throughout the 1990s at 1.5%
was slower than global growth, giving rise to the term Lost Decade. After another decade of low
growth rate, the term became the Lost 20 Years. Nonetheless, GDP per capita growth from 2001
to 2010 has still managed to outpace Europe and the United States.[45]

• With this low growth rate, the national debt of Japan has expanded due to its considerable
social welfare spending in an aging society with a shrinking tax-base. The scenario of
"Abandoned homes" continues to spread from rural areas to urban areas in Japan.

• The topic of discussion today is the economy of Japan.

• Before getting into the nitty gritties of Japanese economy, let me take you through some facts
and figures.

• Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high
technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have
helped Japan develop an advanced economy.

• The economy of Japan is a market-oriented economy.

• It is the third-largest in the world by nominal GDP $40,105 (nominal; 2018)

• the fourth-largest by purchasing power parity (PPP) $44,549 (PPP; 2018)

• the world's 3rd largest developed economy.

• GDP growth

• 1.7% (2017)