The present situation of Japanese economy.

Week3: The present situation of Japanese economy.

Hello! This time I am going to presentation you about present situation of Japanese economy. It is very difficult to presentation this topic only one week. This is because there are many criteria to judge situation of economy. So this time I will introduce you something.

What is GDP? Of course you know this but this time I realize GDP and compare Japan with other countries.

Under an economic theory, per capita GDP is correctly equal to per capita gross domestic income (GDI) .

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living; GDP per capita is not a measure of personal income.

(I refer above. URL:http://en.wikipedia.org/wiki/Gross_domestic_product )

GDP has like a definition (above paragraph ), but it express difficultly. So I say in other words simply. GDP is an index that express how a country richly. Things or service that are produced by a country in a year express how the country is rich. Today in Japan, domestic total price of production is about 930 trillion yen including the price of middle product. For example, middle product is like tire or engine of car. (Tire or engine constitute car and car is last product.) The price of middle product is included in the price of car. So the sales of companies producing middle product is not considered when we calculate GDP in order not to double calculation. Generally, today we can judge how rich a country are about economically and the higher the value of GDP is, the richer the country is. When GDP is higher than 3,500 dollars per one, more and more people buy a car, when GDP is higher than 10,000 dollars per one, the country is almost a developed country.  In the ranking of nominal GDP, Japan is 3^rd so generally, we can consider Japan to rich country and the most rich country is America.

But at present we often use GNP because there are many Japanese companies around the world. GNP is expressed as numerical formula: GNP=GDP-net income from abroad. I write above there are many criteria to judge, GDP and GNP is included it and many other criteria are included too.(365) In addition, to judge that the state of economy is good or not, we use the economic growth rate. It is expressed as numerical formula: {(GDP1-GDP0)/GDP0}×100.(G0 is one year older than G1.) Using this criterion, we can know how GDP change in a year.

  
 Japan is concluding some agreement for example EPA or FTA and so on. EPA is economic partnership agreement and FTA is free trade agreement. But today in Japan, TPP is attracted our attention. TPP is free trade agreement and is conclude with country in Asia-Pacific region. If Japan conclude this agreement, it will must affect Japanese economy. The affection is good or maybe bad. TPP include some problems and related to a lot of things. This topic may be difficult for university students like us but I think our Japanese must know about TPP problems. So if you are interested in this problem this time, it is better to study TPP in detail yourself and have your own ideas