I. INTRODUCTION Japan China Two countries have two opposing political institutions; however, both have seen rapid economic growth over the past few decades. Saving&Debt Interest Rate Inflation Labor Market GDP Overview II. A COMPARATIVE ANALYSIS OF MACRO ECONOMIES OF JAPAN & CHINA Saving&Debt Interest Rate Inflation Labor Market GDP rd largest by the 23nd nominal GDP the largestbyby the4thlargest PPP GDP per capita (PPP)= $43,236 $16,785 (2019) Overview an upper-middlea developed country income country GDP Overview Saving&Debt Interest Rate Inflation Labor Market Nominal GPP surpassed Japan Japan saw a downward trend Real GDP China’s real GDP increased remarkably various reform programs 2009: China overtook Japan more market-oriented Japan saw a very small increase huge population manufacturing boom the world's largest exporter the largest trading nation GDP Growth Rate significantly higher than Japan catch-up effect impact of the Great Recession government’s reforms (5-year plans) 2010- : a downward trend 7% 2008-2009: negative GDP growth various fluctuations around 1-2% Labor Market GDP Overview Saving&Debt Interest Rate Inflation Labor-Force Participation Rate steadily decreased • Chinese one-child policy • controversial policy => negative impacts • women's occupational discrimination • an aging society dramatically increase • • • • women have increasingly joined expansion of the service sector foreign workers growth higher participation of the elderly Unemployment Rate fluctuated insignificantly complete production chains well-educated labor force working conditions and salaries cultivating human resources decreased significantly encouraging participation of women 2008 financial crisis Lehman Brother’s bankruptcy Saving&Debt Interest Rate fluctuated substantially China: the lowest inflation of emerging countries > Japan: an established industrialized powerhouse Inflation Labor Market GDP Overview Inflation Rate (CPI) Saving&Debt Interest Rate Inflation Labor Market GDP Overview Japan: 2.7% (2005) down to 1.2% (2017) China: 1.6% (2005) up to 2.7% (2019) considerable • global economic downturn fluctuations • increasing national debt Saving&Debt Interest Rate Inflation Labor Market GDP Overview Gross Domestic Saving (% of GDP) an upward trend China has one of the world’s highest savings rate an opposing trend 44.9% Household saving Corporate saving 24.5% increasingly gone up persistent current account surpluses substantial net external financial asset position (% of GDP) Government Debt Bank of Japan holds half of GOV bonds much lower figures
