Paolo Patrizi Photography Born in 1965
in Rome, Italy.
Lives in Tokyo, Japan.
Project Description
An Essay On Japan’s Economic DownturnJapan's economy is suffering from its worst downturn in the post-war era.
The country has relied heavily on exports, especially to the U.S., to drive economic growth.
When the credit crunch sapped the American economy last year, Asia's exports collapsed.
Exacerbating matters for Japan has been an increase in the value of the yen, which has tended to make Japanese goods more expensive in foreign markets.
Exports, particularly of electronics and cars, have slumped and production has been slashed.
Consumers have cut back too, alarmed by rising unemployment.
The data confirmed a spate of grim news from Japan's biggest companies, including Toyota Motor Corp.'s first operating loss in 70 years and layoffs of tens of thousands of workers by NEC Corp., Nissan Motor Co., Sony Corp., Toshiba Corp. and others.
Even before those job cuts, Japan's unemployment rate jumped to 4.4% from 3.9% mainly because of staff reductions at small and medium-size businesses as well as the elimination of many temporary jobs.
But slumping exports aren't the only factor to blame. With inflation's return to Japan last year after a long absence, real wages have declined. As a result, even though Japanese consumers have reduced their famously high rate of savings, they trimmed their spending for three straight
quarters. That's something that didn't happen even during the "lost decade" of the 1990s, when the economy collapsed after a property-and-stock bubble burst.
Japan may boast the second largest economy in the world, but the financial chill is slicing its way through the very workers who have brought it wealth and success.
