Economic developmemnt iii

Economic of last5 year
Lakshay sharma
IXB

Economy of last 5year
India, Bangladesh, Japan,U.S.A

Economy of India
 The Gas Authority of India Ltd. (GAIL) holds an effective control on natural gas
transmission and allocation activities. In December 2006, the Minister of
Petroleum and Natural Gas issued a new policy that allows foreign investors,
private domestic companies, and national oil companies to hold up to 100% equity
stakes in pipeline projects. Whilst GAIL's domination in natural gas transmission
and allocation is not ensured by statute, it will continue to be the leading player
in the sector because of its existing natural gas infrastructure.[24]
 India ranked 133rd on the Ease of Doing Business Index in 2010, compared with
85th for Pakistan, 89th for People's Republic of China, 125th for Nigeria, 129th for
Brazil, and 122nd for Indonesia.
 Extent of corruption in Indian states, as measured in a 2005 study by Transparency
International India. (Darker regions are more corrupt)[25]
 Corruption in many forms has been one of the pervasive problems affecting India.
For decades, the red tape, bureaucracy and the Licence Raj that had strangled
private enterprise.[26] The economic reforms of 1991 cut some of the worst
regulations that had been used in corruption.

Economy of India
 Corruption is still large. A 2005 study by Transparency International (TI) India
found that more than half of those surveyed had firsthand experience of
paying a bribe or peddling influence to get a job done in a public office.[25]
The chief economic consequences of corruption are the loss to the exchequer,
an unhealthy climate for investment and an increase in the cost of
government-subsidised services. The TI India study estimates the monetary
value of petty corruption in 11 basic services provided by the government,
like education, healthcare, judiciary, police, etc., to be around ₹211 billion
(US$3.3 billion).[25] India still ranks in the bottom quartile of developing
nations in terms of the ease of doing business, and compared with China, the
average time taken to secure the clearances for a startup or to invoke
bankruptcy is much greater.

Economy of India
 The Right to Information Act (2005) and equivalent acts in the states, that
require government officials to furnish information requested by citizens or
face punitive action, computerisation of services and various central and
state government acts that established vigilance commissions have
considerably reduced corruption or at least have opened up avenues to
redress grievances.[25][27] The 2006 report by Transparency International
puts India at 70th place and states that significant improvements were made
by India in reducing corruption.[28][29]

Economy of India
 Employment
 India's labour force is growing by 2.5% every year, but employment is growing only at 2.3% a year.[30] Official unemployment
exceeds 9%. Regulation and other obstacles have discouraged the emergence of formal businesses and jobs. Almost 30% of
workers are casual workers who work only when they are able to get jobs and remain unpaid for the rest of the time.[30] Only
10% of the workforce is in regular employment.[30] India's labour regulations are heavy even by developing country standards
and analysts have urged the government to abolish them.[1][31]
 From the overall stock of an estimated 458 million workers, 394 million (86%) operate in the unorganised sector (of which 63%
are self-employed) mostly as informal workers. There is a strong relationship between the quality of employment and social
and poverty characteristics.[32] The relative growth of informal employment was more rapid within the organised rather than
the unorganised sector. This informalisation is also related to the flexibilisation of employment in the organised sector that is
suggested by the increasing use of contract labour by employers in order to benefit from more flexible labour practices.[3]
 Children under 14 constitute 3.6% of the total labour force in the country. Of these children, 9 out of every 10 work in their
own rural family settings. Around 85% of them are engaged in traditional agricultural activities. Less than 9% work in
manufacturing, services and repairs.[33] Child labour is a complex problem that is basically rooted in poverty. The Indian
government is implementing the world's largest child labour elimination program, with primary education targeted for ~250
million. Numerous non-governmental and voluntary organisations are also involved. Special investigation cells have been set up
in states to enforce existing laws banning employment of children (under 14) in hazardous industries. The allocation of the
Government of India for the eradication of child labour was US$10 million in 1995–96 and US$16 million in 1996–97. The
allocation for 2007 is US$21 million.[33]

Economy of India
 Environmental degradation
 Main article: Environmental issues in India
 About 1.2 billion people in developing nations lack clean, safe water because most household and
industrial wastes are dumped directly into rivers and lakes without treatment. This contributes to
the rapid increase in waterborne diseases in humans.[34] Out of India's 3119 towns and cities, just
209 have partial treatment facilities, and only 8 have full wastewater treatment facilities (WHO
1992).[35] 114 cities dump untreated sewage and partially cremated bodies directly into the Ganges
River.[36] Downstream, the untreated water is used for drinking, bathing, and washing. This
situation is typical of many rivers in India as well as other developing countries. Globally, but
especially in developing nations like India where people cook with fuelwood and coal over open
fires, about 4 billion humans suffer continuous exposure to smoke. In India, particulate
concentrations in houses are reported to range from 8,300 to 15,000 μg/m3, greatly exceeding the
75 μg/m3 maximum standard for indoor particulate matter in the United States.[37] Changes in
ecosystem biological diversity, evolution of parasites, and invasion by exotic species all frequently
result in disease outbreaks such as cholera which emerged in 1992 in India. The frequency of
AIDS/HIV is increasing. In 1996, about 46,000 Indians out of 2.8 million (1.6% of the population)
tested were found to be infected with HIV.[38]

Economy of Bangladesh
 Economy of Bangladesh
 Currency ৳ Bangladesh Taka (BDT)
 Fiscal year
 1 July - 30 June
 Trade organizations
 SAFTA, BIMSTEC
 Statistics
 GDP $572 billion (PPP) 33th; (2015 est.)[1]
 $209 billion (nominal) 44th; (2015 est.)[2]
 GDP rank 44th (nominal)
 GDP growth
 7.20% (2015-16 est.) [3]
 GDP per capita

 $3,019 (PPP); (2014 est.)[4]
 $1,314 (nominal; 2015)[4]
 GDP by sector
 Agriculture: 19%; industry: 30%; services: 51% (2013 est.)
 Inflation (CPI)
 6.2% (2012)[5]
 Population below poverty line
 22% (2013)[6]
 Gini coefficient
 32.1 (2007)
 Labour force
 87.9 million (2013)[7]
 Labour force by occupation
 agriculture: 40%, industry: 30%, services: 30% (2013)
 Unemployment 4.5%[8] (2013 est.)
 Main industries
 textiles, food processing, steel, pulp and paper, jute, shipbuilding, pharmaceuticals, electronics, automotive parts, ceramics, fertilizer, construction materials, leather, natural gas, renewable energy
 Ease-of-doing-business rank
 117th[9]

 China 8.8%
 European Union 6.6%
 Indonesia 6%
 Australia 1.7%
 Gross external debt
 $36.21 billion (31 December 2012 est.)
 Public finances
 Public debt
 22.8% of GDP (2013 est.).

 Revenues $14.67 billion (2013.)
 Expenses $22.15 billion (2013.)
 Credit rating
 BB- (domestic)
 BB- (foreign)
 BB- (T&C assessment)
 Outlook: Stable
 (Standard & Poor's)[12]
 Foreign reserves
 $25 billion (June 2015)[13]
 Main data source: CIA World Fact Book
 All values, unless otherwise stated, are in US dollars

 Bangladesh is a developing country that is classified as a Next Eleven
emerging market and one of the Frontier Five. According to a recent opinion
poll, Bangladesh has the second most pro-capitalist population in the
developing world.[14]
 Between 2004 and 2014, Bangladesh averaged a GDP growth rate of 6%. The
economy is increasingly led by export-oriented industrialization. The
Bangladesh textile industry is the second-largest in the world. Other key
sectors include pharmaceuticals, shipbuilding, ceramics, leather goods and
electronics. Being situated in one of the most fertile regions on Earth,
agriculture plays a crucial role, with the principal cash crops including rice,
jute, tea, wheat, cotton and sugarcane. Bangladesh ranks fifth in the global
production of fish and seafood. Remittances from the Bangladeshi diaspora
provide vital foreign exchange.

 The Bangladesh telecoms industry has witnessed rapid growth over the years
and is dominated by foreign investors. The government has emphasized the
development of software services and hi-tech industries under the Digital
Bangladesh scheme. Bangladesh has substantial reserves of natural gas and
coal; and many international oil companies are involved in production and
exploration activities in the Bay of Bengal. Regional neighbours are keen to
use Bangladeshi ports and railways for transhipment. Located at the
crossroads of SAARC, the ASEAN+3, BIMSTEC, and the Indian Ocean,
Bangladesh has the potential to emerge as a regional economic and logistics
hub.
 In 2015, per-capita income stood at USD 1,314.[15] While achieving significant
macroeconomic stability, Bangladesh continues to face challenges such as
infrastructure deficits and energy shortages.

 Economic history
 Scented rice. Bangladesh is the world's 4th largest rice producer
 East Bengal - the eastern segment of Bengal - was a historically prosperous
region.[16] The Ganges Delta provided advantages of a mild, almost tropical
climate, fertile soil, ample water, and an abundance of fish, wildlife, and
fruit.[16] The standard of living is believed to have been higher compared with
other parts of South Asia.[16] As early as the thirteenth century, the region was
developing as an agrarian economy.[16] Bengal was the junction of trade routes on
the Southeastern Silk Road. Under Mughal rule, it was a center of the worldwide
muslin, silk and pearl trade.[16] The British East India company, however, on their
arrival in the late eighteenth century, chose to develop Calcutta, now the capital
city of West Bengal, as their commercial and administrative center for the
company held territories in South Asia.[16] The development of East Bengal was
thereafter limited to agriculture.[16] The administrative infrastructure of the late
eighteenth and nineteenth centuries reinforced East Bengal's function as the
primary agricultural producer—chiefly of rice, tea, teak, cotton, sugar cane and
jute — for processors and traders from around Asia and beyond.[16]

 After its independence from Pakistan, Bangladesh followed a socialist economy by
nationalizing all industries, proving to be a critical blunder undertaken by the
Awami League government. Some of the same factors that had made East Bengal a
prosperous region became disadvantages during the nineteenth and twentieth
centuries.[16] As life expectancy increased, the limitations of land and the annual
floods increasingly became constraints on economic growth.[16] Traditional
agricultural methods became obstacles to the modernization of agriculture.[16]
Geography severely limited the development and maintenance of a modern
transportation and communications system.[16]
 Chittagong harbor, 18th century
 Dhaka, 1861.
 The partition of British India and the emergence of India and Pakistan in 1947
severely disrupted the economic system. The united government of Pakistan
expanded the cultivated area and some irrigation facilities, but the rural
population generally became poorer between 1947 and 1971

 Bangladesh had a large work force, the vast reserves of under trained and
underpaid workers were largely illiterate, unskilled, and underemployed.[17]
Commercially exploitable industrial resources, except for natural gas, were
lacking.[17] Inflation, especially for essential consumer goods, ran between
300 and 400 percent.[17] The war of independence had crippled the
transportation system.[17] Hundreds of road and railroad bridges had been
destroyed or damaged, and rolling stock was inadequate and in poor
repair.[17] The new country was still recovering from a severe cyclone that
hit the area in 1970 and cause 250,000 deaths.[17] India came forward
immediately with critically measured economic assistance in the first months
after Bangladesh achieved independence from Pakistan.[17] Between
December 1971 and January 1972, India committed US$232 million in aid to
Bangladesh from the politco-economic aid India received from the USA and
USSR. Official amount of disbursement yet undisclosed.[17]

 After 1975, Bangladeshi leaders began to turn their attention to developing
new industrial capacity and rehabilitating its economy.[18] The static
economic model adopted by these early leaders, however—including the
nationalization of much of the industrial sector—resulted in inefficiency and
economic stagnation.[18] Beginning in late 1975, the government gradually
gave greater scope to private sector participation in the economy, a pattern
that has continued.[18] Many state-owned enterprises have been privatized,
like banking, telecommunication, aviation, media, and jute.[18] Inefficiency
in the public sector has been rising however at a gradual pace; external
resistance to developing the country's richest natural resources is mounting;
and power sectors including infrastructure have all contributed to slowing
economic growth.[18]
 The Jamuna Multipurpose Bridge was opened in 1998.

 , there were encouraging signs of progress.[18] Economic policies aimed at
encouraging private enterprise and investment, privatizing public industries,
reinstating budgetary discipline, and liberalizing the import regime were
accelerated.[18] From 1991 to 1993, the government successfully followed an
enhanced structural adjustment facility (ESAF) with the International Monetary
Fund (IMF) but failed to follow through on reforms in large part because of
preoccupation with the government's domestic political troubles.[18] In the late
1990s the government's economic policies became more entrenched, and some of
the early gains were lost, which was highlighted by a precipitous drop in foreign
direct investment in 2000 and 2001.[18] In June 2003 the IMF approved 3-year,
$490-million plan as part of the Poverty Reduction and Growth Facility (PRGF) for
Bangladesh that aimed to support the government's economic reform program up
to 2006.[18] Seventy million dollars was made available immediately.[18] In the
same vein the World Bank approved $536 million in interest-free loans.[18] In the
year 2010 Government of India extended a line of credit worth $1 billion to
counterbalance China's close relationship with Bangladesh.

 Bangladesh historically has run a large trade deficit, financed largely through
aid receipts and remittances from workers overseas.[18] Foreign reserves
dropped markedly in 2001 but stabilized in the USD3 to USD4 billion range (or
about 3 months' import cover).[18] In January 2007, reserves stood at $3.74
billion, and then increased to $5.8 billion by January 2008, in November 2009
it surpassed $10.0 billion, and as of April 2011 it surpassed the US $12 billion
according to the Bank of Bangladesh, the central bank.[18] The dependence
on foreign aid and imports has also decreased gradually since the early 1990s.

 Macro-economic trend
 This is a chart of trend of gross domestic product of Bangladesh at market
prices estimated by the International Monetary Fund with figures in millions
of Bangladeshi Taka. However, this reflects only the formal sector of the
economy.
 Year Gross Domestic Product US Dollar Exchange Inflation Index
 (2000=100) Per Capita Income
 (as % of USA)
 1980 250,300 16.10 Taka 20 1.79

 1985 597,318 31.00 Taka 36 1.19
 1990 1,054,234 35.79 Taka 58 1.16
 1995 1,594,210 40.27 Taka 78 1.12
 2000 2,453,160 52.14 Taka 100 0.97
 2005 3,913,334 63.92 Taka 126 0.95
 2008 5,003,438 68.65 Taka 147
 2010 70.20 Taka
 2014 76.20 Taka.
 Mean wages were $0.58 per manhour in 2009.
 Economic sectors
 Agriculture
 Map showing the growing areas of major agricultural products.
 Main article: Agriculture of Bangladesh

 Most Bangladeshis earn their living from agriculture.[18] Although rice and
jute are the primary crops, maize and vegetables are assuming greater
importance.[18] Due to the expansion of irrigation networks, some wheat
producers have switched to cultivation of maize which is used mostly as
poultry feed.[18] Tea is grown in the northeast.[18] Because of Bangladesh's
fertile soil and normally ample water supply, rice can be grown and harvested
three times a year in many areas.[18] Due to a number of factors,
Bangladesh's labor-intensive agriculture has achieved steady increases in food
grain production despite the often unfavorable weather conditions.[18] These
include better flood control and irrigation, a generally more efficient use of
fertilizers, and the establishment of better distribution and rural credit
networks.[18] With 28.8 million metric tons produced in 2005-2006 (July–
June), rice is Bangladesh's principal crop.[18] By comparison, wheat output in
2005-2006 was

 9 million metric tons.[18] Population pressure continues to place a severe
burden on productive capacity, creating a food deficit, especially of
wheat.[18] Foreign assistance and commercial imports fill the gap,[18] but
seasonal hunger ("monga") remains a problem.[20] Underemployment remains
a serious problem, and a growing concern for Bangladesh's agricultural sector
will be its ability to absorb additional manpower.[18] Finding alternative
sources of employment will continue to be a daunting problem for future
governments, particularly with the increasing numbers of landless peasants
who already account for about half the rural labor force.[18] Due to farmers'
vulnerability to various risks, Bangladesh's poorest face numerous potential
limitations on their ability to enhance agriculture production and their
livelihoods. These include an actual and perceived risk to investing in new
agricultural technologies and activities (despite their potential to increase
income), a vulnerability to shocks and stresses and a limited ability to
mitigate or cope with these and limited access to market information.[20]

 Manufacturing and industry
 A Danish ferry built in a Bangladeshi shipyard. The country has a rapidly
growing shipbuilding industry
 Many new jobs - mostly for women - have been created by the country's
dynamic private ready-made garment industry, which grew at double-digit
rates through most of the 1990s.[18] By the late 1990s, about 1.5 million
people, mostly women, were employed in the garments sector as well as
Leather products specially Footwear (Shoe manufacturing unit). During 2001-
2002, export earnings from ready-made garments reached $3,125 million,
representing 52% of Bangladesh's total exports. Bangladesh has overtaken
India in apparel exports in 2009, its exports stood at 2.66 billion US dollar,
ahead of India's 2.27 billion US dollar and in 2014 the export rose to $3.12
billion every month.

 Eastern Bengal was known for its fine muslin and silk fabric before the British
period. The dyes, yarn, and cloth were the envy of much of the premodern
world. Bengali muslin, silk, and brocade were worn by the aristocracy of Asia
and Europe. The introduction of machine-made textiles from England in the
late eighteenth century spelled doom for the costly and time-consuming hand
loom process. Cotton growing died out in East Bengal, and the textile industry
became dependent on imported yarn. Those who had earned their living in
the textile industry were forced to rely more completely on farming. Only the
smallest vestiges of a once-thriving cottage industry survived.[21]
 Other industries which have shown very strong growth include the
pharmaceutical industry,[22] shipbuilding industry,[23] information
technology,[24] leather industry,[25] steel industry,[26] electronics
industry[27] and light engineering industry.[28][29]

 Apparel sector
 Main article: Bangladesh textile industry
 A Bangladeshi textile fabric plant
 Bangladesh's textile industry, which includes knitwear and ready-made garments
(RMG) along with specialized textile products, is the nation's number one export
earner, accounting for $21.5 billion in 2013 – 80% of Bangladesh's total exports of
$27 billion.[30] Bangladesh is 2nd in world textile exports, behind China, which
exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5
million workers. Current exports have doubled since 2004. Wages in Bangladesh's
textile industry were the lowest in the world as of 2010. The country was
considered the most formidable rival to China where wages were rapidly rising and
currency was appreciating.[31][32] As of 2012 wages remained low for the 3
million people employed in the industry, but labor unrest was increasing despite
vigorous government action to enforce labor peace. Owners of textile firms and
their political allies were a powerful political influence in Bangladesh.[33]

 A ready-made garments factory
 The urban garment industry has created more than one million formal sector
jobs for women, contributing to the high female labor participation in
Bangladesh.[34] While it can be argued that women working in the garment
industry are subjected to unsafe labor conditions and low wages, Dina M.
Siddiqi argues that even though conditions in Bangladesh garment factories
“are by no means ideal," they still give women in Bangladesh the opportunity
to earn their own wages.[35] As evidence she points to the fear created by
the passage of the 1993 Harkins Bill (Child Labor Deterrence Bill), which
caused factory owners to dismiss "an estimated 50,000 children, many of
whom helped support their families, forcing them into a completely
unregulated informal sector, in lower-paying and much less secure
occupations such as brick-breaking, domestic service and rickshaw
pulling."[35]

 Even though the working conditions in garment factories are not ideal, they tend
to financially be more reliable than other occupations and, “enhance women’s
economic capabilities to spend, save and invest their incomes."[36] Both married
and unmarried women send money back to their families as remittances, but these
earned wages have more than just economic benefits. Many women in the garment
industry are marrying later, have lower fertility rates, and attain higher levels of
education, then women employed elsewhere.[36]
 After massive labor unrest in 2006[37] the government formed a Minimum Wage
Board including business and worker representatives which in 2006 set a minimum
wage equivalent to 1,662.50 taka, $24 a month, up from Tk950. In 2010, following
widespread labor protests involving 100,000 workers in June, 2010,[38][39] a
controversial proposal was being considered by the Board which would raise the
monthly minimum to the equivalent of $50 a month, still far below worker
demands of 5,000 taka, $72, for entry level wages, but unacceptably high
according to textile manufacturers who are asking for a wage below $30.[32][40]
On July 28, 2010 it was announced that the minimum entry level wage would be
increased to 3,000 taka, about $43.[41]

 The government also seems to believe some change is necessary. On September 21, 2006 then ex-Prime Minister Khaleda Zia
called on textile firms to ensure the safety of workers by complying with international labor law at a speech inaugurating the
Bangladesh Apparel & Textile Exposition (BATEXPO).
 Shipbuilding and ship breaking
 Main article: Shipbuilding in Bangladesh
 Ships in shipyard at Buriganga Rive
 Shipbuilding is a growing industry in Bangladesh with great potentials.[42][43] The potentials of shipbuilding in Bangladesh has
made the country to be compared with countries like China, Japan and South Korea.[44] Referring to the growing amount of
export deals secured by the shipbuilding companies as well as the low cost labor available in the country, experts suggest that
Bangladesh could emerge as a major competitor in the global market of small to medium ocean-going vessels.
 Bangladesh also has the world's largest ship breaking industry which employs over 200,000 Bangladeshis and accounts for half of
all the steel in Bangladesh.[46] Chittagong Ship Breaking Yard is world's second-largest ship breaking area.
 Khulna Shipyard Limited (KSY) with over five decades of reputation has been leading the Bangladesh Shipbuilding industry and
had built a wide spectrum of ships for domestic and international clients. KSY built ships for Bangladesh Navy, Bangladesh Army
and Bangladesh Coast Guard under the contract of ministry of defense.
 Investment

 Headquarters of Grameenphone, the country's largest telecoms operator.
 The stock market capitalization of the Dhaka Stock Exchange in Bangladesh crossed $10
billion in November 2007 and the $30 billion mark in 2009, and USD 50 billion in August
2010.[47] Bangladesh had the best performing stock market in Asia during the recent global
recession between 2007 and 2010, due to relatively low correlations with developed country
stock markets.[48]Major investment in real estate by domestic and foreign-resident
Bangladeshis has led to a massive building boom in Dhaka and Chittagong.
 Recent (2011) trends for investing in Bangladesh as Saudi Arabia trying to secure public and
private investment in oil and gas, power and transportation projects, United Arab Emirates
(UAE) is keen to invest in growing shipbuilding industry in Bangladesh encouraged by
comparative cost advantage, Tata, an India-based leading industrial multinational to invest
Taka 1500 crore to set up an automobile industry in Bangladesh, World Bank to invest in rural
roads improving quality of live, the Rwandan entrepreneurs are keen to invest in Bangladesh's
pharmaceuticals sector considering its potentiality in international market, Samsung sought
to lease 500 industrial plots from the export zones authority to set up an electronics hub in
Bangladesh with an investment of US$1.25 billion, National Board of Revenue (NBR) is set to
withdraw tax rebate facilities on investment in the capital market by individual taxpayers
from the fiscal 2011-12.[49] In 2011, Japan Bank for International Cooperation ranked
Bangladesh as the 15th best investment destination for foreign investors.[50]

 2010-11 market crash
 Main article: 2011 Bangladesh share market scam
 The bullish capital market turned bearish during 2010, with the exchange losing 1,800 points between December 2010 and
January 2011.[51] Millions of investors have been rendered bankrupt as a result of the market crash. The crash is believed to be
caused artificially to benefit a handful of players at the expense of the big players.[51]
 External trade
 The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has predicted textile exports will rise from US$7.90
billion earned in 2005-06 to US$15 billion by 2011. In part this optimism stems from how well the sector has fared since the end
of textile and clothing quotas, under the Multifibre Agreement, in early 2005.
 According to a United Nations Development Programme report "Sewing Thoughts: How to Realize Human Development Gains in
the Post-Quota World" Bangladesh has been able to offset a decline in European sales by cultivating new markets in the United
States.[52]
 "[In 2005] we had tremendous growth. The quota-free textile regime has proved to be a big boost for our factories," said BGMEA
president S.M. Fazlul Hoque told reporters, after the sector's 24 per cent growth rate was revealed.[53]

 The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Md Fazlul Hoque has also struck an
optimistic tone. In an interview with United News Bangladesh he lauded the blistering growth rate, saying "The quality of our
products and its competitiveness in terms of prices helped the sector achieve such... tremendous success."
 Knitwear posted the strongest growth of all textile products in 2005-06, surging 35.38 per cent to US$2.82 billion. On the
downside however, the sector's strong growth came amid sharp falls in prices for textile products on the world market, with
growth subsequently dependent upon large increases in volume.
 Bangladesh's quest to boost the quantity of textile trade was also helped by US and EU caps on Chinese textiles. The US cap
restricts growth in imports of Chinese textiles to 12.5 per cent next year and between 15 and 16 per cent in 2008. The EU deal
similarly manages import growth until 2008.
 Bangladesh may continue to benefit from these restrictions over the next two years, however a climate of falling global textile
prices forces wage rates the centre of the nation's efforts to increase market share.
 They offer a range of incentives to potential investors including 10-year tax holidays, duty-free import of capital goods, raw
materials and building materials, exemptions on income tax on salaries paid to foreign nationals for three years and dividend
tax exemptions for the period of the tax holiday.
 All goods produced in the zones are able to be exported duty-free, in addition to which Bangladesh benefits from the
Generalised System of Preferences in US, European and Japanese markets and is also endowed with Most Favoured Nation
status from the United States.
 Furthermore, Bangladesh imposes no ceiling on investment in the EPZs and allows full repatriation of profits.

 The formation of labour unions within the EPZs is prohibited as are strikes.[54]
 A Square Pharmaceuticals plant in Gazipur. Bangladesh's pharmaceuticals industry exports to over 50 countries
 Bangladesh has been a world leader in its efforts to end the use of child labor in garment factories. On July 4, 1995, the
Bangladesh Garment Manufacturers and Exporters Association, International Labour Organization, and UNICEF signed a
memorandum of understanding on the elimination of child labor in the garment sector. Implementation of this pioneering
agreement began in fall 1995, and by the end of 1999, child labor in the garment trade virtually had been eliminated.[55] The
labor-intensive process of ship breaking for scrap has developed to the point where it now meets most of Bangladesh's domestic
steel needs. Other industries include sugar, tea, leather goods, newsprint, pharmaceutical, and fertilizer production.
 The Bangladesh government continues to court foreign investment, something it has done fairly successfully in private power
generation and gas exploration and production, as well as in other sectors such as cellular telephony, textiles, and
pharmaceuticals. In 1989, the same year it signed a bilateral investment treaty with the United States, it established a Board of
Investment to simplify approval and start-up procedures for foreign investors, although in practice the board has done little to
increase investment. The government created the Bangladesh Export Processing Zone Authority to manage the various export
processing zones. The agency currently manages EPZs in Adamjee, Chittagong, Comilla, Dhaka, Ishwardi, Karnaphuli, Mongla,
and Uttara. An EPZ has also been proposed for Sylhet.[56] The government has given the private sector permission to build and
operate competing EPZs-initial construction on a Korean EPZ started in 1999. In June 1999, the AFL-CIO petitioned the U.S.
Government to deny Bangladesh access to U.S. markets under the Generalized System of Preferences (GSP), citing the country's
failure to meet promises made in 1992 to allow freedom of association in EPZs.

 Bangladeshi women and the economy
 “Bangladesh is a highly patriarchal society (as are many countries in the region) with gender being a
key factor in defining social roles, responsibilities and power relationships within the family and
workplace.”[57] Male workforce participation is significantly higher than female participation, with
men participating at 83 percent and women at 59 percent; however, male workforce participation
has decreased by 4 percent, while female participation has increased by 4 percent from the year
2000.[58] It should be noted that a 59 percent female participation rate is high in comparison to a
lot of countries like Iran, which has a 16.5 female labor participation rate (World Bank 2010), and
Lebanon, which has a 22.5 female labor participation rate.[34]
 A 2007 World Bank report stated that the areas in which women's work force participation have
increased the most are in the fields of agriculture, education and health and social work.[34] Over
three-quarters of women in the labor force work in the agricultural sector. On the other hand, the
International Labour Organization reports that women's workforce participation has only increased
in the professional and administrative areas between 2000 and 2005, demonstrating women's
increased participation in sectors that require higher education. Employment and labor force
participation data from the World Bank, the UN, and the ILO vary and often under report on
women's work due to unpaid labor and informal sector jobs.[59] Though these fields are mostly paid,
women experience very different work conditions than men, including wage differences and work
benefits. Women’s wages are significantly lower than men’s wages for the same job with women
being paid as much as 60-75 percent less than what men make.[60]

 One example of action that is being taken to improve female conditions in the work force is Non-Governmental Organizations.
These NGOs encourage women to rely on their own self-savings, rather than external funds provide women with increased
decision-making and participation within the family and society.[61] However, some NGOs that address microeconomic issues
among individual families fail to deal with broader macroeconomic issues that prevent women's complete autonomy and
advancement.[61]
 Overview
 Karwan Bazar is home to many of Bangladesh's important offices
 Bazaars in Bangladesh are popular trading places for everyday household necessities.
 Bangladesh has made significant strides in its economic sector performance since independence in 1971. Although the economy
has improved vastly in the 1990s, Bangladesh still suffers in the area of foreign trade in South Asian region. Despite major
impediments to growth like the inefficiency of state-owned enterprises, a rapidly growing labor force that cannot be absorbed
by agriculture, inadequate power supplies,[62] and slow implementation of economic reforms, Bangladesh has made some
headway improving the climate for foreign investors and liberalizing the capital markets; for example, it has negotiated with
foreign firms for oil and gas exploration, better countrywide distribution of cooking gas, and the construction of natural gas
pipelines and power stations. Progress on other economic reforms has been halting because of opposition from the
bureaucracy, public sector unions, and other vested interest groups.
 The especially severe floods of 1998 increased the flow of international aid. So far the global financial crisis has not had a
major impact on the economy.[63] Foreign aid has seen a gradual decline over the last few decades but economists see this as
a good sign for self-reliance.[64] There has been a dramatic growth in exports and remittance inflow which has helped the
economy to expand at a steady rate.

 Fiscal Year Total Export Total Import Foreign Remittance Earnings
 2007–2008 $14.11b $25.205b $8.9b
 2008–2009 $15.56b $22.00b+ $9.68b
 2009–2010 $16.7b ~$24b $10.87b
 2010–2011 $22.93b $32b $11.65b
 2011–2012 $24.30b $35.92b $12.85b
 2013–2014 $30.10b $29.37b $14.00b
 2014–2015 $31.19b $15.00b

Economy of Japan
 Economy of Japan Skyscrapers of Shinjuku 2009 January.jpg
 Financial center in Tokyo
 Currency Japanese yen (JPY)
 Fiscal year
 1 April – 31 March
 Trade organisations
 APEC, WTO, OECD, G-20, G8 and others
 Statistics
 GDP $4.210 trillion (2015 est.) (nominal; 3rd)
 $4.70 trillion(2013 est.) (PPP; 4th)
 GDP rank 3rd (nominal) / 4th (PPP)
 GDP growth
 1% real (QoQ, Q1 2015)
 2.3% nominal (QoQ Q1 2015)

Economy of Japan
 Economy of Japan Skyscrapers of Shinjuku 2009 January.jpg
 Financial center in Tokyo
 Currency Japanese yen (JPY)
 Fiscal year
 1 April – 31 March
 Trade organisations
 APEC, WTO, OECD, G-20, G8 and others
 Statistics
 GDP $4.210 trillion (2015 est.) (nominal; 3rd)
 $4.70 trillion(2013 est.) (PPP; 4th)
 GDP rank 3rd (nominal) / 4th (PPP)
 GDP growth

Economy of Japan
 1% real (QoQ, Q1 2015)
 2.3% nominal (QoQ Q1 2015)
 GDP per capita
 $33,223 (2015 est.) (nominal; 24th)
 $36,899 (2013 est.) (PPP; 23rd)
 GDP by sector
 agriculture: 1.2%, industry: 27.5%, services: 71.4% (2012 est.)
 Inflation (CPI)
 3.2% (May 2014)[1]
 Population below poverty line
 16% (2010)[2]
 Gini coefficient
 38.1 (2002)
 Labour force
 65.93 million (2011 est.)
 Labour force by occupation
 agriculture: 3.9%, industry: 26.2%, services: 69.8% (2010 est.)
 Unemployment 3.4% (2015 est.)[3]

Economy of Japan
 Main industries
 motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods
 Ease-of-doing-business rank
 24th[4]
 External
 Exports $697 billion (2013 est.)
 Export goods
 motor vehicles 13.6%; semiconductors 6.2%; iron and steel products 5.5%; auto parts 4.6%; plastic materials 3.5%; power generating
machinery 3.5%
 Main export partners
 China 18.1%
 United States 17.8%
 South Korea 7.7%
 Thailand 5.5%
 Hong Kong 5.1% (2012 est.) [5]
 Imports $766.6 billion (2013 est.)

Economy of Japan
 Import goods
 petroleum 15.5%; liquid natural gas 5.7%; clothing 3.9%; semiconductors 3.5%; coal 3.5%; audio and visual apparatus 2.7%
 Main import partners
 China 21.3%
 United States 8.8%
 Australia 6.4%
 Saudi Arabia 6.2%
 United Arab Emirates 5.0%
 South Korea 4.6%
 Qatar 4.0% (2012 est.) [6]
 FDI stock
 $1.41 trillion (2013)
 Gross external debt
 $2.767 trillion (Q3 2014 est.)[7]
 Public finances

Economy of Japan
 Public debt
 226.10% of GDP (2013 est.)[8]
 Revenues $1.739 trillion (2013 est.)
 Expenses $2.149 trillion (2013 est.)
 Economic aid $9.7 billion ODA (February 2007)
 Credit rating
 Standard & Poor's:[9]
 AA- (Domestic)
 AA- (Foreign)
 AAA (T&C Assessment)
 Outlook: Stable[10]
 Moody's:[10]
 A1
 Outlook: Positive
 Fitch:[10]
 A-
 Outlook: Positive
 Foreign reserves
 US$1.264 trillion (Sep 2014)[11]
 Main data source: CIA World Fact Book

Economy of Japan
 All values, unless otherwise stated, are in US dollars.
 The economy of Japan is the third largest in the world by nominal GDP,[12][13] the fourth largest by
purchasing power parity [14] and is the world's second largest developed economy.[15] According to
the International Monetary Fund, the country's per capita GDP (PPP) was at $36,899, the 22nd-
highest in 2013.[16] Japan is a member of G7. The Japanese economy is forecasted by the Quarterly
Tankan survey of business sentiment conducted by the Bank of Japan.[17]
 Due to a volatile currency exchange rate, Japan's GDP as measured in dollars fluctuates widely.
Accounting for these fluctuations through use of the Atlas method, Japan is estimated to have a GDP
per capita of around $38,490.
 Japan is the world's third largest automobile manufacturing country,[18] has the largest electronics
goods industry, and is often ranked among the world's most innovative countries leading several
measures of global patent filings.[19] Facing increasing competition from China and South
Korea,[20] manufacturing in Japan today now focuses primarily on high-tech and precision goods,
such as optical instruments, hybrid vehicles, and robotics. Besides the Kantō region,[21][22][23][24]
the Kansai region is one of the leading industrial clusters and manufacturing centers for the
Japanese economy

Economy of Japan
 Japan is the world's largest creditor nation,[26][27] generally running an annual trade surplus and having a considerable net
international investment surplus. As of 2010, Japan possesses 13.7% of the world's private financial assets (the second largest in
the world) at an estimated $14.6 trillion.[28] As of 2013, 62 of the Fortune Global 500 companies are based in Japan.[29]
 Overview of economy
 In the three decades of economic development following 1960, Japan ignored defense spending in favor of economic
growth,[30][31] thus allowing for a rapid economic growth referred to as the Japanese post-war economic miracle. By the
guidance of Ministry of Economy, Trade and Industry,[32] with average growth rates of 10% in the 1960s, 5% in the 1970s, and
4% in the 1980s, Japan was able to establish and maintain itself as the world's second largest economy from 1978 until 2010,
when it was supplanted by the People's Republic of China. By 1990, income per capita in Japan equalled or surpassed that in
most countries in the West.
 However, in the second half of the 1980s, rising stock and real estate prices caused the economic bubble to the Japanese
economy by Bank of Japan. 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 growth in other major
developed economies, giving rise to the term Lost Decade. Nonetheless, GDP per capita growth from 2001-2010 has still
managed to outpace Europe and the United States.[34] But Japan public debt remains a daunting task for the Japanese
government due to excessive borrowing, social welfare spending with an aging society and lack of economic/industrial growth
in recent years to contribute to the tax revenue.[35] Japan had recently embraced the new strategy of economic growth with
such goals to be achieved in 2020 as expected.[36] The ICT industry has generated the major outputs to the Japanese
economy.[37][38][39][40][41][42][43][44][45][46] Japan is the second largest music market in the world (for more, see Japan
Hot 100).[47] With fewer children in the aging Japan, Japanese Anime industry is facing growing Chinese competition in the
targeted Chinese market.[48] Japanese Manga industry (from the Japanese Manga (and anime) profession [49][50]) enjoys
popularity in most of the Asian markets.[51] The issue of export-oriented economy from the Japanese currency intervention
causes the effect of improving export but reduces import due to weaker Yen by the Japanese government.

Economy of Japan
 A mountainous, volcanic island country, Japan has inadequate natural resources to support its growing
economy and large population, and therefore exports goods in which it has a comparative advantage such as
engineering-oriented, Research and Development-led industrial products in exchange for the import of raw
materials and petroleum. Japan is among the top-three importers for agricultural products in the world next
to the European Union and United States in total volume for covering of its own domestic agricultural
consumption.[53] Japan is the world’s largest single national importer of fish and fishery
products.[54][55][56][57][58] Tokyo Metropolitan Central Wholesale Market [59][60] is the largest wholesale
market for primary products in Japan, including the renowned Tsukiji fish market.[61][62] Japanese
whaling, ostensibly for research purposes, has been challenged as illegal under international law.
 Although many kinds of minerals were extracted throughout the country, most mineral resources had to be
imported in the postwar era. Local deposits of metal-bearing ores were difficult to process because they
were low grade. The nation's large and varied forest resources, which covered 70 percent of the country in
the late 1980s, were not utilized extensively. Because of political decisions on local, prefectural, and
national levels, Japan decided not to exploit its forest resources for economic gain. Domestic sources only
supplied between 25 and 30 percent of the nation's timber needs. Agriculture and fishing were the best
developed resources, but only through years of painstaking investment and toil. The nation therefore built
up the manufacturing and processing industries to convert raw materials imported from abroad. This
strategy of economic development necessitated the establishment of a strong economic infrastructure to
provide the needed energy, transportation, communications, and technological know-how.

Economy of Japan
 Deposits of gold, magnesium, and silver meet current industrial demands, but Japan is dependent on
foreign sources for many of the minerals essential to modern industry. Iron ore, copper, bauxite, and
alumina must be imported, as well as many forest products.
 Economic history
 An 1856 ukiyo-e depicting Echigoya, the current Mitsukoshi
 Main article: Economic history of Japan
 The economic history of Japan is one of the most studied economies for its spectacular growth in three
different periods. First was the foundation of Edo (in 1603) to whole inland economical developments,
second was the Meiji Restoration (in 1868) to be the first non-European power, third was after the defeat of
World War II (in 1945) when the island nation rose to become the world's second largest economy.
 First contacts with Europe (16th century)
 Main article: Nanban trade
 Japan was considered as a country rich in precious metals, mainly owing to Marco Polo's accounts of gilded
temples and palaces, but also due to the relative abundance of surface ores characteristic of a massive
huge volcanic country, before large-scale deep-mining became possible in Industrial times.[63] Japan was to
become a major exporter of silver, copper, and gold during the period until exports for those minerals were
banned.[64]

Economy of Japan
 Renaissance Japan was also perceived as a sophisticated feudal society with a
high culture and a strong pre-industrial technology. It was densely populated
and urbanized. Prominent European observers of the time seemed to agree
that the Japanese "excel not only all the other Oriental peoples, they surpass
the Europeans as well" (Alessandro Valignano, 1584, "Historia del Principo y
Progresso de la Compania de Jesus en las Indias Orientales).
 Early European visitors were amazed by the quality of Japanese craftsmanship
and metalsmithing. This stems from the fact that Japan itself is rather poor in
natural resources found commonly in Europe, especially iron. Thus, the
Japanese were famously frugal with their consumable resources; what little
they had they used with expert skill.

Economy of Japan
 The cargo of the first Portuguese ships (usually about 4 smaller-sized ships every year)
arriving in Japan almost entirely consisted of Chinese goods (silk, porcelain). The Japanese
were very much looking forward to acquiring such goods, but had been prohibited from any
contacts with the Emperor of China, as a punishment for Wakō pirate raids. The Portuguese
(who were called Nanban, lit. Southern Barbarians) therefore found the opportunity to act as
intermediaries in Asian trade.
 Edo period (1603–1868)

 The beginning of the Edo period coincides with the last decades of the Nanban trade period,
during which intense interaction with European powers, on the economic and religious plane,
took place. It is at the beginning of the Edo period that Japan built her first ocean-going
Western-style warships, such as the San Juan Bautista, a 500-ton galleon-type ship that
transported a Japanese embassy headed by Hasekura Tsunenaga to the Americas, which then
continued to Europe. Also during that period, the bakufu commissioned around 350 Red Seal
Ships, three-masted and armed trade ships, for intra-Asian commerce. Japanese adventurers,
such as Yamada Nagamasa, were active throughout Asia.

Economy of Japan
 In order to eradicate the influence of Christianization, Japan entered in a period of isolation called sakoku, during which its economy
enjoyed stability and mild progress.[citation needed]

 Economic development during the Edo period included urbanization, increased shipping of commodities, a significant expansion of domestic
and, initially, foreign commerce, and a diffusion of trade and handicraft industries. The construction trades flourished, along with banking
facilities and merchant associations. Increasingly, han authorities oversaw the rising agricultural production and the spread of rural
handicrafts.

 By the mid-eighteenth century, Edo had a population of more than 1 million and Osaka and Kyoto each had more than 400,000 inhabitants.
Many other castle towns grew as well. Osaka and Kyoto became busy trading and handicraft production centers, while Edo was the center
for the supply of food and essential urban consumer goods.

 Rice was the base of the economy, as the daimyo collected the taxes from the peasants in the form of rice. Taxes were high, about 40% of
the harvest. The rice was sold at the fudasashi market in Edo. To raise money, the daimyo used forward contracts to sell rice that was not
even harvested yet. These contracts were similar to modern futures trading.

 During the period, Japan progressively studied Western sciences and techniques (called rangaku, literally "Dutch studies") through the
information and books received through the Dutch traders in Dejima. The main areas that were studied included geography, medicine,
natural sciences, astronomy, art, languages, physical sciences such as the study of electrical phenomena, and mechanical sciences as
exemplified by the development of Japanese clockwatches, or wadokei, inspired from Western techniques.

Economy of Japan
 Prewar period (1868–1945)
 Since the mid-19th century, after the Meiji restoration, the country was opened up to Western commerce and influence and
Japan has gone through two periods of economic development. The first began in earnest in 1868 and extended through to
World War II; the second began in 1945 and continued into the mid-1980s.

 Economic developments of the prewar period began with the “Rich State and Strong Army Policy” by the Meiji government.
During the Meiji period (1868–1912), leaders inaugurated a new Western-based education system for all young people, sent
thousands of students to the United States and Europe, and hired more than 3,000 Westerners to teach modern science,
mathematics, technology, and foreign languages in Japan (Oyatoi gaikokujin). The government also built railroads, improved
road, and inaugurated a land reform program to prepare the country for further development.

 To promote industrialization, the government decided that, while it should help private business to allocate resources and to
plan, the public sector was best equipped to stimulate economic growth. The greatest role of government was to help provide
good economic conditions for business. In short, government was to be the guide and business the producer. In the early Meiji
period, the government built factories and shipyards that were sold to entrepreneurs at a fraction of their value. Many of these
businesses grew rapidly into the larger conglomerates. Government emerged as chief promoter of private enterprise, enacting
a series of probusiness policies.


Economy of Japan
In the mid-1930s, the Japanese nominal wage rates were 10 times less than the one of the U.S (based on mid-1930s exchange rates),
while the price level is estimated to have been about 44% the one of the U.S.[65]
Postwar period (1945–present)
Japanese exports in 2005
See also: Japanese post-war economic miracle and Economic history of JapaFrom the 1960s to the 1980s, overall real economic
growth was extremely large: a 10% average in the 1960s, a 5% average in the 1970s and a 4% average in the 1980s.[66] By the end of
said period, Japan had moved into being a high-wage economy.[67]
Growth slowed markedly in the late 1990s also termed the Lost Decade after the collapse of the Japanese asset price bubble. As a
consequence Japan ran massive budget deficits (added trillions in Yen to Japanese financial system) to finance large public works
programGraphical depiction of Japan Product 's product exports (2012) from Harvard Atlas of Economic ComplexityBy 1998, Japan's
public works projects still could not stimulate demand enough to end the economy's stagnation. In desperation, the Japanese
government undertook "structural reform" policies intended to wring speculative excesses from the stock and real estate markets.
Unfortunately, these policies led Japan into deflation on numerous occasions between 1999 and 2004. In his 1998 paper, Japan's
Trap, Princeton economics professor Paul Krugman argued that based on a number of models, Japan had a new option. Krugman's
plan called for a rise in inflation expectations to, in effect, cut long-term interest rates and promote spending.[68]Japan used
another technique, somewhat based on Krugman's, called Quantitative easing. As opposed to flooding the money supply with newly
printed money, the Bank of Japan expanded the money supply internally to raise expectations of inflation. Initially, the policy failed
to induce any growth, but it eventually began to affect inflationary expectations. By late 2005, the economy finally began what
seems to be a sustained recovery. GDP growth for that year was 2.8%, with an annualized fourth quarter expansion of 5.5%,
surpassing the growth rates of the US and European Union during the same period.[69] Unlike previous recovery trends, domestic
consumption has been the dominant factor of growth.

Economy of Japan
 Despite having interest rates down near zero for a long period of time, the Quantitative easing strategy did not succeed in stopping price deflation.[70] This led some economists, such as Paul
Krugman, and some Japanese politicians, to advocate the generation of higher inflation expectations.[71] In July 2006, the zero-rate policy was ended. In 2008, the Japanese Central Bank still has the
lowest interest rates in the developed world, deflation has still not been eliminated[72] and the Nikkei 225 has fallen over approximately 50% (between June 2007 and December 2008). However, on
April 5, 2013, the Bank of Japan announced that it would be purchasing 60-70 trillion yen in bonds and securities in an attempt to eliminate deflation by doubling the money supply in Japan over the
course of two years. Markets around the world have responded positively to the government's current proactive policies, with the Nikkei 225 adding more than 42% since November 2012.[73] The
Economist has suggested that improvements to bankruptcy law, land transfer law, and tax laws will aid Japan's economy. In recent years, Japan has been the top export market for almost 15 trading
nations worldwide.
 Infrastructure
 Shinkansen N700 Series
 Main articles: Energy in Japan and Transportation in Japan
 In 2005, one half of Japan's energy was produced from petroleum, a fifth from coal, and 14% from natural gas.[74] Nuclear power in Japan made a quarter of electricity production but due to the
Fukushima Daiichi nuclear disaster there has been a large desire to end Japan's nuclear power program.[75][76] In September 2013, Japan closed its last 50 nuclear power plants nationwide, causing
the nation to be nuclear free.[77]
 Japan's spendings on roads has been considered large.[78] The 1.2 million kilometers of paved road are one of the major means of transportation.[79] Japan has left-hand traffic.[80] A single network
of speed, divided, limited-access toll roads connects major cities and are operated by toll-collecting enterprises.[81] New and used cars are inexpensive, and the Japanese government has encouraged
people to buy hybrid vehicles.[82] Car ownership fees and fuel levies are used to promote energy-efficiency.[82]
 Rail transport is a major means of transport in Japan. Dozens of Japanese railway companies compete in regional and local passenger transportation markets; for instance, 6 passenger JR enterprises,
Kintetsu Corporation, Seibu Railway, and Keio Corporation.[83] Often, strategies of these enterprises contain real estate or department stores next to stations, and many major stations have major
department stores near them.[84] The Japanese cities of Fukuoka, Kobe, Kyoto, Nagoya, Osaka, Sapporo, Sendai, Tokyo and Yokohama all have subway systems. Some 250 high-speed Shinkansen trains
connect major cities.[85] All trains are known for punctuality, and a delay of 90 seconds can be considered late for some train services.[86]
 There are 98 passenger and 175 total airports in Japan, and flying is a popular way to travel.[2][87][88] The largest domestic airport, Tokyo International Airport, is Asia's second busiest airport.[89]
The largest international gateways are Narita International Airport (Tokyo area), Kansai International Airport (Osaka/Kobe/Kyoto area), and Chūbu Centrair International Airport (Nagoya area).[90] The
largest ports in Japan include Nagoya Port, the Port of Yokohama, the Port of Tokyo and the Port of Kobe.[91]

Economy of Japan
 About 84% of Japan's energy is imported from other countries.[92][93] Japan is the world's largest liquefied natural gas importer, second
largest coal importer, and third largest net oil importer.[94] Given its heavy dependence on imported energy, Japan has aimed to diversify
its sources.[95] Since the oil shocks of the 1970s, Japan has reduced dependence on petroleum as a source of energy from 77.4% in 1973 to
about 43.7% in 2010 and increased dependence on natural gas and nuclear power.[96] Other important energy source includes coal, and
hydroelectricity is Japan's biggest renewable energy source.[97][98] Japan's solar market is also currently booming.[99] Kerosene is also
used extensively for home heating in portable heaters, especially farther north.[100] Many taxi companies run their fleets on liquefied
natural gas.[101] A recent success towards greater fuel economy was the introduction of mass-produced Hybrid vehicles.[82] Prime Minister
Shinzo Abe, who was working on Japan's economic revival, signed a treaty with Saudi Arabia and UAE about the rising prices of oil, ensuring
Japan's stable deliveries from that region.[102][103]
 Macro-economic trend
 Real GDP growth rate from 1956 to 2008
 Quarterly change in the real GDP (blue) and the unemployment rate (red) of Japan from 2000 to 2010. See Okun's law.

 This is a chart of trend of gross domestic product of Japan at market prices estimated by the International Monetary Fund with figures in
millions of Japanese Yen.[104] See also[105][106]
 Year Gross domestic product US dollar exchange Inflation index
 (2000=100) Nominal per-capita GDP
 (as % of USA) PPP capita GDP
 (as % of USA)

Economy of Japan
 1955 8,369,500 ￥360.00 10.31 –
 1960 16,009,700 ￥360.00 16.22 –
 1965 32,866,000 ￥360.00 24.95 –
 1970 73,344,900 ￥360.00 38.56 –
 1975 148,327,100 ￥297.26 59.00 –
 1980 240,707,315 ￥225.82 100 105.85 71.87
 2005 502,905,400 ￥110.01 97 85.04 71.03
 2010 477,327,134 ￥88.54 98 89.8 71.49

 For purchasing power parity comparisons, the US dollar was exchanged at ￥109 in 2010.[107]
 Industries

 Industries by GDP value-added 2012.[108] Values are converted using the exchange rate on April 13, 2013.[109]
 Industry GDP value-added $ billions 2012 % of total GDP
 Other service activities 1,238 23.5%
 Manufacturing 947 18.0%
 Real Estate 697 13.2%
 Wholesale and retail trade 660 12.5%
 Transport and communication 358 6.8%
 Public administration 329 6.2%
 Construction 327 6.2%

Economy of Japan
 Finance and insurance 306 5.8%
 Electricity, gas and water supply 179 3.4%
 Government service activities 41 0.7%
 Mining 3 0.05%
 Total 5,268 100%
 Sectors of the economy
 Agriculture
 Main article: Agriculture, forestry, and fishing in Japan
 Rice is a very important crop in Japan as shown here in a rice paddy in Tawaramoto, Nara.

 The Japanese agricultural sector accounts for about 1.4% of the total country's GDP.[110] Only 12% of Japan's land is suitable for cultivation.[111][112] Due to this lack of arable land, a system of
terraces is used to farm in small areas.[113] This results in one of the world's highest levels of crop yields per unit area, with an overall agricultural self-sufficiency rate of about 50% on fewer than
56,000 km² (14 million acres) cultivated.

 Japan's small agricultural sector, however, is also highly subsidized and protected, with government regulations that favor small-scale cultivation instead of large-scale agriculture as practiced in
North America.[111] There has been a growing concern about farming as the current farmers are aging with a difficult time finding successors.[114]

 Rice accounts for almost all of Japan's cereal production.[115] Japan is the second-largest agricultural product importer in the world.[115] Rice, the most protected crop, is subject to tariffs of
777.7%.[112][116]

Economy of Japan

 Although Japan is usually self-sufficient in rice (except for its use in making rice crackers and processed
foods) and wheat, the country must import about 50% of its requirements of other grain and fodder crops
and relies on imports for half of its supply of meat.[117][118] Japan imports large quantities of wheat and
soybeans.[115] Japan is the 5th largest market for EU agricultural exports.[119] Over 90% of mandarin
oranges in Japan are grown in Japan.[118] Apples are also grown due to restrictions on apple imports.[120]
 Fishery
 Main article: Fishing industry in Japan
 Global fish catch in Japan

 Japan ranked fourth in the world in 1996 in tonnage of fish caught.[121] Japan captured 4,074,580 metric
tons of fish in 2005, down from 4,987,703 tons in 2000, 9,558,615 tons in 1990, 9,864,422 tons in 1980,
8,520,397 tons in 1970, 5,583,796 tons in 1960 and 2,881,855 tons in 1950.[122] In 2003, the total
aquaculture production was predicted at 1,301,437 tonnes.[123] In 2010, Japan's total fisheries production
was 4,762,469 fish.[124] Offshore fisheries accounted for an average of 50% of the nation's total fish catches
in the late 1980s although they experienced repeated ups and downs during that period.


Economy of Japan
 Coastal fishing by small boats, set nets, or breeding techniques accounts for about one third of the industry's total production, while offshore fishing by medium-sized boats makes up for more than
half the total production. Deep-sea fishing from larger vessels makes up the rest. Among the many species of seafood caught are sardines, skipjack tuna, crab, shrimp, salmon, pollock, squid, clams,
mackerel, sea bream, sauries, tuna and Japanese amberjack. Freshwater fishing, including salmon, trout and eel hatcheries and fish farms,[125] takes up about 30% of Japan's fishing industry. Among
the nearly 300 fish species in the rivers of Japan are native varieties of catfish, chub, herring and goby, as well as such freshwater crustaceans as crabs and crayfish.[126] Marine and freshwater
aquaculture is conducted in all 47 prefectures in Japan.[123]

 Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch,[127] prompting some claims that Japan's fishing is leading to depletion in fish stocks such as
tuna.[128] Japan has also sparked controversy by supporting quasi-commercial whaling.[129]
 Industry
 Main article: Manufacturing in Japan

 Japanese manufacturing and industry is very diversified, with a variety of advanced industries that are highly successful. Industry accounts for 24% of the nation's GDP.[110]

 Industry is concentrated in several regions, with the Kantō region surrounding Tokyo, (the Keihin industrial region) as well as the Kansai region surrounding Osaka (the Hanshin industrial region) and
the Tōkai region surrounding Nagoya (the Chukyo-Tokai industrial region) the main industrial centers.[21][22][23][24][25][130] Other industrial centers include the southwestern part of Honshū and
northern Shikoku around the Seto Inland Sea (the Setouchi industrial region); and the northern part of Kyūshū (Kitakyūshū). In addition, a long narrow belt of industrial centers called the Taiheiyō Belt
is found between Tokyo and Fukuoka, established by particular industries, that have developed as mill towns.

 Japan enjoys high technological development in many fields, including consumer electronics, automobile manufacturing, semiconductor manufacturing, optical fibers, optoelectronics, optical media,
facsimile and copy machines, and fermentation processes in food and biochemistry. However, many Japanese companies are facing emerging rivals from the United States of America, South Korea, and
China.[131]
 Automobile manufacturing

Economy of Japan
 Main article: Manufacturing in Japan
 Lexus LS. The rapid growth and success of Toyota's Lexus and other Japanese automakers reflects Japan's strength and global dominance in
the automobile industry.

 Japan is the third biggest producer of automobiles in the world.[18] Toyota is currently the world largest car maker, and the Japanese car
makers Nissan, Honda, Suzuki, and Mazda also count for some of the largest car makers in the world.[132][133]
 Mining and petroleum exploration
 Main article: Mining in Japan

 Japan's mining production has been minimal, and Japan has very little mining deposits.[134][135] However, massive deposits of rare earths
have been found off the coast of Japan.[136] In the 2011 fiscal year, the domestic yield of crude oil was 820 thousand kiloliters, which was
0.4% of Japan's total crude processing volume.[137]
 Services
 Main article: Trade and services in Japan
 Japan Airlines, though faced with massive debts as of 2010, is considered one of the largest airlines in the world.

 Japan's service sector accounts for about three-quarters of its total economic output.[110] Banking, insurance, real estate, retailing,
transportation, and telecommunications are all major industries such

Economy of Japan
 as Mitsubishi UFJ, Mizuho, NTT, TEPCO, Nomura, Mitsubishi Estate, ÆON, Mitsui Sumitomo, Softbank, JR East, Seven & I, KDDI and Japan Airlines counting as one of the largest companies in the world.[138][139] Four of the five most
circulated newspapers in the world are Japanese newspapers.[140] The Koizumi government set Japan Post, one of the country's largest providers of savings and insurance services for privatization by 2015.[141] The six major keiretsus
are the Mitsubishi, Sumitomo, Fuyo, Mitsui, Dai-Ichi Kangyo and Sanwa Groups.[142] Japan is home to 251 companies from the Forbes Global 2000 or 12.55% (as of 2013).[143]
 Tourism
 Main article: Tourism in Japan
 Himeji Castle, in Himeji, Hyōgo Prefecture, is one of the most visited sights in Japan.

 In 2012, Japan was the fifth most visited country in Asia and the Pacific, with over 8.3 million tourists.[144] In 2013, due to the weaker yen and easier visa requirements for southwest Asian countries, Japan received a record 11.25
million visitors, which was higher than the government's projected goal of 10 million visitors.[145][146][147] The government hopes to attract 20 million visitors a year by the 2020 Summer Olympics in Tokyo.[146] Some of the most
popular visited places include the Shinjuku, Ginza, Shibuya and Asakusa areas in Tokyo, and the cities of Osaka, Kobe and Kyoto, as well as Himeji Castle.[148] Hokkaido is also a popular winter destination for visitors with several ski
resorts and luxury hotels being built there.[146][149]
 Finance
 The main trading room of the Tokyo Stock Exchange, one of the largest stock exchanges in the world.

 The Tokyo Stock Exchange is the fourth largest stock exchange in the world by market capitalization, as well as the 2nd largest stock market in Asia, with 2,292 listed companies.[150][151][152][153][154] The Nikkei 225 and the TOPIX
are the two important stock market indexes of the Tokyo Stock Exchange.[155][156] The Tokyo Stock Exchange and the Osaka Stock Exchange, another major stock exchange in Japan, merged on January 1, 2013, creating one of the
world's largest stock exchanges.[154] Other stock exchanges in Japan include the Nagoya Stock Exchange, Fukuoka Stock Exchange and Sapporo Securities Exchange.[157][158]
 Labor force
 Main article: Labor market of Japan
 Unemployment rate of Japan

 The unemployment rate in December 2013 was 3.7%, down 1.5 percentage points from the claimed unemployment rate of 5.2% in June 2009 due to the strong economic recovery.[159][160][161] This is regarded as an
underestimate.[citation needed] Even part-time workers with extremely low hours are classified as employed.


Economy of Japan
 In July 2006, the unemployment rate in Japan was 4.1%, according to the OECD. At the end of February 2009, it stood at 4.4% [162] This seemingly modest rate however understates the situation.
According to The Economist, the ratio of job offers to number of applicants has declined to just 0.59, from almost 1 at the start of 2008, while average work hours also declined. Average wages also
went down by 2.9% over the 12 months ending in February. In 2008, Japan's labor force consisted of some 66 million workers—40% of whom were women—and was rapidly shrinking.[163]

 One major long-term concern for the Japanese labor force is a low birthrate.[164] In the first half of 2005, the number of deaths in Japan exceeded the number of births, indicating that the decline in
population, initially predicted to start in 2007, had already started. While one countermeasure for a declining birthrate would be to remove barriers to immigration, despite taking new steps towards
it, the Japanese government has been reluctant to do so, and foreign immigration to Japan has been unpopular among citizens.[165]

 In 1989, the predominantly public sector union confederation, SOHYO (General Council of Trade Unions of Japan), merged with RENGO (Japanese Private Sector Trade Union Confederation) to form
the Japanese Trade Union Confederation. Labor union membership is about 12 million.
 Law and government

 Japan ranks 27th of 185 countries in the Ease of Doing Business Index 2013.[166]

 Japan has one of the smallest tax rates in the developed world.[167] After deductions, the majority of workers are free from personal income taxes. Consumption tax rate is only 8%, while corporate
tax rates are high, second highest corporate tax rate in the world, at 36.8%.[167][168][169] However, the House of Representatives has passed a bill which will increase the consumption tax to 10% in
October 2015.[170] The government has also decided to reduce corporate tax and to phase out automobile tax.[171][172]

 Shareholder activism is rare despite the fact that the corporate law gives shareholders strong powers over managers.[173] Recently, more shareholders have stood up against managers.[174]

 The government's liabilities include the second largest public debt of any nation with debt of over one quadrillion yen.[175][176][177] Former Prime Minister Naoto Kan has called the situation
'urgent'.[178]


Economy of Japan
 Japan's central bank has the second largest foreign-exchange reserves after the People's Republic of China, with over one trillion US Dollars in foreign reserves.[179]
 Culture
 Overview

 Nemawashi (根回し), or "consensus building", in Japanese culture is an informal process of quietly laying the foundation for some proposed change or project, by talking to the people concerned, gathering support and feedback, and so forth. It is considered an important element in
any major change, before any formal steps are taken, and successful nemawashi enables changes to be carried out with the consent of all sides.

 Japanese companies are known for management methods such as "The Toyota Way". Kaizen (改善, Japanese for "improvement") is a Japanese philosophy that focuses on continuous improvement throughout all aspects of life. When applied to the workplace, Kaizen activities
continually improve all functions of a business, from manufacturing to management and from the CEO to the assembly line workers.[180] By improving standardized activities and processes, Kaizen aims to eliminate waste (see Lean manufacturing). Kaizen was first implemented in
several Japanese businesses during the country's recovery after World War II, including Toyota, and has since spread to businesses throughout the world.[181] Within certain value systems, it is ironic that Japanese workers labor amongst the most hours per day, even though kaizen
is supposed to improve all aspects of life.

 Some companies have powerful enterprise unions and shuntō. The Nenko System or Nenko Joretsu as it is called in Japan, is the Japanese system of promoting an employee in order of his or her proximity to retirement. The advantage of the system is that it allows older employees
to achieve a higher salary level before retirement and that it usually brings more experience to the executive ranks. The disadvantage of the system is that it does not allow new talent to be merged with the experience and those with specialized skills cannot be promoted to the
already crowded executive ranks. It also does not guarantee or even attempt to bring the "right person for the right job". Relationships between government bureaucrats and companies are often close. Amakudari (天下り amakudari?, "descent from heaven") is the institutionalised
practice where Japanese senior bureaucrats retire to high-profile positions in the private and public sectors. The practice is increasingly viewed as corrupt and a drag on unfastening ties between private sector and state that prevent economic and political reforms. Lifetime
employment (shushin koyo) and seniority-based career advancement have been common in the Japanese work environment.[167][182] Japan has begun to gradually move away from some of these norms.[183][184]

 Salaryman (サラリーマン Sararīman?, salaried man) refers to someone whose income is salary based; particularly those working for corporations. Its frequent use by Japanese corporations, and its prevalence in Japanese manga and anime has gradually led to its acceptance in
English-speaking countries as a noun for a Japanese white-collar businessman. The word can be found in many books and articles pertaining to Japanese culture. Immediately following World War II, becoming a salaryman was viewed as a gateway to a stable, middle-class lifestyle.
In modern use, the term carries associations of long working hours, low prestige in the corporate hierarchy, absence of significant sources of income other than salary, wage slavery, and karōshi. The term salaryman refers almost exclusively to males.

 An office lady, often abbreviated OL (Japanese: オーエル Ōeru), is a female office worker in Japan who performs generally pink collar tasks such as serving tea and secretarial or clerical work. Like many unmarried Japanese, OLs often live with their parents well into early
adulthood. Office ladies are usually full-time permanent staff, although the jobs they do usually have little opportunity for promotion, and there is usually the tacit expectation that they leave their jobs once they get married.

 Freeter (フリーター furītā?) (other spellings below) is a Japanese expression for people between the age of 15 and 34 who lack full-time employment or are unemployed, excluding homemakers and students. They may also be described as underemployed or freelance workers.
These people do not start a career after high school or university but instead usually live as parasite singles with their

Economy of Japan
 parents and earn some money with low skilled and low paid jobs. The low income makes it difficult for freeters to start a family, and the lack of qualifications makes it difficult to start a career at a later point in life.

 Karōshi (過労死 karōshi?), which can be translated quite literally from Japanese as "death from overwork", is occupational sudden death. The major medical causes of karōshi deaths are heart attack and stroke due to stress.

 Sōkaiya (総会屋 sōkaiya?), (sometimes also translated as corporate bouncers, meeting-men, or corporate blackmailers) are a form of specialized racketeer unique to Japan, and often associated with the yakuza that extort money from or blackmail companies by threatening to
publicly humiliate companies and their management, usually in their annual meeting (総会 sōkai?). Sarakin (サラ金?) is a Japanese term for moneylender, or loan shark. It is a contraction of the Japanese words for salaryman and cash. Around 14 million people, or 10% of the
Japanese population, have borrowed from a sarakin. In total, there are about 10,000 firms (down from 30,000 a decade ago); however, the top seven firms make up 70% of the market. The value of outstanding loans totals $100 billion. The biggest sarakin are publicly traded and
often allied with big banks.[185]

 The first "Western-style" department store in Japan was Mitsukoshi, founded in 1904, which has its root as a kimono store called Echigoya from 1673. When the roots are considered, however, Matsuzakaya has an even longer history, dated from 1611. The kimono store changed to a
department store in 1910. In 1924, Matsuzakaya store in Ginza allowed street shoes to be worn indoors, something innovative at the time.[186] These former kimono shop department stores dominated the market in its earlier history. They sold, or rather displayed, luxurious
products, which contributed for their sophisticated atmospheres. Another origin of Japanese department store is that from railway company. There have been many private railway operators in the nation, and from the 1920s, they started to build department stores directly linked
to their lines' termini. Seibu and Hankyu are the typical examples of this type. From the 1980s onwards, Japanese department stores face fierce competition from supermarkets and convenience stores, gradually losing their presences. Still, depāto are bastions of several aspects of
cultural conservatism in the country. Gift certificates for prestigious department stores are frequently given as formal presents in Japan. Department stores in Japan generally offer a wide range of services and can include foreign exchange, travel reservations, ticket sales for
local concerts and other events.
 Keiretsu
 Main article: Keiretsu

 A keiretsu (系列?, lit. system or series) is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The prototypical keiretsu appeared in Japan during the "economic miracle" following World War II. Before Japan's surrender,
Japanese industry was controlled by large family-controlled vertical monopolies called zaibatsu. The Allies dismantled the zaibatsu in the late 1940s, but the companies formed from the dismantling of the zaibatsu were reintegrated. The dispersed corporations were re-interlinked
through share purchases to form horizontally integrated alliances across many industries. Where possible, keiretsu companies would also supply one another, making the alliances vertically integrated as well. In this period, official government policy promoted the creation of robust
trade corporations that could withstand pressures from intensified world trade competition.[187]

 The major keiretsu were each centered on one bank, which lent money to the keiretsu's member companies and held equity positions in the companies. Each central bank had great control over the companies in the keiretsu and acted as a monitoring entity and as an emergency
bail-out entity. One effect of this structure was to minimize the presence of hostile takeovers in Japan, because no entities could challenge the power of the banks.

 There are two types of keiretsu: vertical and horizontal. Vertical keiretsu illustrates the organization and relationships within a company (for example all factors of production of a certain product are connected), while a horizontal keiretsu shows relationships between entities and
industries, normally centered on a bank and trading company. Both are complexly woven together and self-sustain each other.

 The Japanese recession in the 1990s had profound effects on the keiretsu. Many of the largest banks were hit hard by bad loan portfolios and forced to merge or go out of business. This had the effect of blurring the lines between the keiretsu: Sumitomo Bank and Mitsui Bank, for
instance, became Sumitomo Mitsui Banking Corporation in 2001, while Sanwa Bank (the banker for the Hankyu-Toho Group) became part of Bank of Tokyo-Mitsubishi UFJ. Additionally, many companies from outside the keiretsu system, such as Sony, began outperforming their
counterparts within the system.

 Generally, these causes gave rise to a strong notion in the business community that the old keiretsu system was not an effective business model, and led to an overall loosening of keiretsu alliances. While the keiretsu still exist, they are not as centralized or integrated as they
were before the 1990s. This, in turn, has led to a growing corporate acquisition industry in Japan, as companies are no longer able to be easily "bailed out" by their banks, as well as rising derivative litigation by more independent shareholders.
 Other economic indicators

Economy of Japan
 Agriculture – Products: rice, sugar beets, vegetables, fruit, pork, poultry, dairy products, eggs, fish

 Exports – Commodities: machinery and equipment, motor vehicles, semiconductors, chemicals

 Imports – Commodities: machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials (2001)

 Exchange rates:
 Japanese Yen per US$1 – 88.67 (2010), 93.57 (2009), 103.58 (2008), 117.99 (2007), 116.18 (2006), 109.69 (2005), 115.93 (2003),
125.39 (2002), 121.53 (2001), 105.16 (January 2000), 113.91 (1999), 130.91 (1998), 120.99 (1997), 108.78 (1996), 94.06 (1995)

 Electricity:

 Electricity – consumption: 925.5 billion kWh (2008)
 Electricity – production: 957.9 billion kWh (2008 est.)

Economy of Japan
 Electricity – exports: 0 kWh (2008)
 Electricity – imports: 0 kWh (2008)

 Electricity – Production by source:

 Fossil Fuel: 69.7%
 Hydro: 7.3%
 Nuclear: 22.5%
 Other: 0.5% (2008)

 Electricity – Standards:

 100 volts at 50 Hz from the Oi River (in Shizuoka) Northward;
 100 volts at 60 Hz Southward

 Oil:

 production: 132,700 bbl/d (21,100 m3/d) (2009) (46th)
 consumption: 4,363,000 bbl/d (693,700 m3/d) (2009) (3rd)
 exports: 380,900 barrels per day (60,560 m3/d) (2008) (64th)
 imports: 5,033,000 barrels per day (800,200 m3/d) (2008) (2nd)
 net imports: 4,620,000 barrels per day (735,000 m3/d) (2008 est.)
 proved reserves: 44,120,000 bbl (7,015,000 m3) (1 January 2010 est.)

Economy of U.S.A
 The unofficial beginning and ending dates of recessions in the United States have been defined by the National Bureau of
Economic Research (NBER), an American private nonprofit research organization. The NBER defines a recession as "a significant
decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross
domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales".[1][nb 1]
 There have been as many as 47 recessions in the United States since 1790, although economists and historians dispute certain
19th-century recessions.[3] Cycles in the country's agriculture, consumption, and business investment, and the health of the
banking industry contribute to these declines. U.S. recessions have increasingly affected economies on a worldwide scale,
especially as countries' economies become more intertwined.
 In the 19th century, recessions frequently coincided with financial crises. Determining the occurrence of pre-20th-century
recessions is more difficult due to the dearth of economic statistics, so scholars rely on historical accounts of economic
activity, such as contemporary newspapers or business ledgers. Although the NBER does not date recessions before 1857,
economists customarily extrapolate dates of U.S. recessions back to 1790 from business annals based on various contemporary
descriptions. Their work is aided by historical patterns, in that recessions often follow external shocks to the economic system
such as wars and variations in the weather affecting agriculture, as well as banking crises.[4]
 Major modern economic statistics, such as unemployment and GDP, were not compiled on a regular and standardized basis until
after World War II. The average duration of the 11 recessions between 1945 and 2001 is 10 months, compared to 18 months for
recessions between 1919 and 1945, and 22 months for recessions from 1854 to 1919.[5] Because of the great changes in the
economy over the centuries, it is difficult to compare the severity of modern recessions to early recessions.[6] No recession of
the post-World War II era has come anywhere near the depth of the Great Depression, which lasted from 1929 until 1933 and
was caused by the 1929 crash of the stock market and other factors.

Economy of U.S.A
Early recessions and crises[edit]
Attempts have been made to date recessions in America beginning in 1790. These periods of
recession were not identified until the 1920s. To construct the dates, researchers studied
business annals during the period and constructed time series of the data. The earliest
recessions for which there is the most certainty are those that coincide with major financial
crises.[7][8]
Beginning in 1834, an index of business activity by the Cleveland Trust Company provides
data for comparison between recessions. Beginning in 1854, the National Bureau of
Economic Research dates recession peaks and troughs to the month. But for the earliest
recessions, there are no standardized indexes, and the data are considered unreliable. As the
data get older, their reliability worsens.[7]
In 1791, Congress chartered the First Bank of the United States to handle the country's
financial needs. The bank had some functions of a modern central bank, although it was
responsible for only 20% of the young country's currency. In 1811 the bank's charter lapsed,
but it was replaced by the Second Bank of the United States, which lasted from 1816–36.[8]
Name Dates[nb 2] Duration
Time
since
previous
recession
Characteristics
Panic of 1785 1785–1788 ~4 years
The panic of 1785, which
lasted until 1788, ended the
business boom that followed
the American Revolution. The
causes of the crisis lay in the
overexpansion and debts
incurred after the victory at
Yorktown, a postwar
deflation, competition in the
manufacturing sector from
Britain, and lack of adequate
credit and a sound currency.
The downturn was
exacerbated by the absence of
any significant interstate
trade. Other factors were the
British refusal to conclude a
commercial treaty, and actual
and pending defaults among
debtor groups. The panic
among business and
propertied groups led to the
demand for a stronger federal
government.
Copper Panic of 1789 1789–1793 ~4 years ~0 years
Loss of confidence in copper
coins due to debasement and

Economy of U.S.A
 A destitute pea picker in California in 1936. Following the severe Great
Depression, the post-World War II economy has seen long expansions and, for
the most part, less severe recessions than in earlier American history.
 Following the end of World War II and the large adjustment as the economy
adjusted from wartime to peacetime in 1945, the collection of many
economic indicators, such as unemployment and GDP, became standardized.
Recessions after World War II may be compared to each other much more
easily than previous recessions because of these available data. The listed
dates and durations are from the official chronology of the National Bureau of
Economic Research.[5] GDP data are from the Bureau of Economic Analysis,
unemployment from the Bureau of Labor Statistics (after 1948). Note that the
unemployment rate often reaches a peak associated with a recession after
the recession has officially ended.[29]

Economy of U.S.A
 Annualized GDP change from 1923 to 2009. Data are annual from 1923 to 1946 and quarterly from
1947 to the second quarter of 2009.
 No recession of the post-World War II era has come anywhere near the depth of the Great
Depression. In the Great Depression, GDP fell by 27% (the deepest after demobilization is the
recession beginning in December 2007, during which GDP has fallen 3.9% as of the second quarter of
2009) and unemployment reached 25% (the highest since was the 10.8% rate reached during the
1981–82 recession).[30]
 The National Bureau of Economic Research dates recessions on a monthly basis back to 1854;
according to their chronology, from 1854 to 1919, there were 16 cycles. The average recession
lasted 22 months, and the average expansion 27. From 1919 to 1945, there were six cycles;
recessions lasted an average 18 months and expansions for 35. From 1945 to 2001, and 10 cycles,
recessions lasted an average 10 months and expansions an average of 57 months.[5] This has
prompted some economists to declare that the business cycle has become less severe.[31] Factors
that may have contributed to this moderation include the creation of a central bank and lender of
last resort, like the Federal Reserve System in 1913, the establishment of deposit insurance in the
form of the Federal Deposit Insurance Corporation in 1933, increased regulation of the banking
sector, the adoption of interventionist Keynesian economics, and the increase in automatic
stabilizers in the form of government programs (unemployment insurance, social security, and later
Medicare and Medicaid). See Post-World War II economic expansion for further discussion.

Economy of U.S.A
Name Dates
Duration
(months)
Time since
previous
recession
(months)
Peak
unemploy-
ment
GDP decline
(peak to
trough)
Characteristics
Great Depression
Aug 1929 –
Mar 1933
3 years
7 months
1 year
9 months
24.9%[32]
(1933)
−26.7%
Stock markets crashed worldwide. A banking collapse took place in the United States. Extensive new tariffs and other factors contributed to an extremely deep
depression. The United States remained in a depression until World War II. In 1936, unemployment fell to 16.9%, but later returned to 19% in 1938 (near 1933 levels).
Recession of 1937–
1938
May 1937 –
June 1938
1 year
1 month
4 years
2 months
19.0%[33]
(1938)
−18.2%
The Recession of 1937 is only considered minor when compared to the Great Depression, but is otherwise among the worst recessions of the 20th century. Three
explanations are offered for the recession: that tight fiscal policy from an attempt to balance the budget after the expansion of the New Deal caused recession, that
tight monetary policy from the Federal Reserve caused the recession, or that declining profits for businesses led to a reduction in investment.[34]
Recession of 1945 Feb–Oct 1945 8 months
6 years
8 months
5.2%[33]
(1946)
−12.7%
The decline in government spending at the end of World War II led to an enormous drop in gross domestic product, making this technically a recession. This was the
result of demobilization and the shift from a wartime to peacetime economy. The post-war years were unusual in a number of ways (unemployment was never high)
and this era may be considered a "sui generis end-of-the-war recession".[35]
Recession of 1949
Nov 1948 –
Oct 1949
11 months
3 years
1 month
7.9%
(Oct 1949)
−1.7%
The 1948 recession was a brief economic downturn; forecasters of the time expected much worse, perhaps influenced by the poor economy in their recent
lifetimes.[36] The recession also followed a period of monetary tightening.[30]
Recession of 1953
July 1953 –
May 1954
10 months
3 years
9 months
6.1%
(Sep 1954)
−2.6%
After a post-Korean War inflationary period, more funds were transferred to national security. In 1951, the Federal Reserve reasserted its independence from the
U.S. Treasury and in 1952, the Federal Reserve changed monetary policy to be more restrictive because of fears of further inflation or of a bubble forming.[30][37][38]
Recession of 1958
Aug 1957 –
April 1958
8 months
3 years
3 months
7.5%
(July 1958)
−3.7% Monetary policy

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Economic developmemnt iii

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