At a trend rate of 2%, Japan is the slowest growing economy in Asia, and the country is getting poorer. In 1992 Japan was fifth in the OECD in per capita income, but by 2002 had dropped to 19th, while government debt levels are the highest in OECD history.
The domestic component of the economy is essentially stagnant, with GDP growth coming almost solely from capital expenditure and exports. With half of all exports now going to Asia, it is less directly vulnerable to a US slowdown...
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