Japanese Economy in 2007-2010

This article focuses on the Japanese economy and its development in 2007-2010. It pays special attention to the deep economic crisis in 2008-2009 (the biggest economic slump in Japan after World War II). Factors of this crisis were mostly external (strong decline in Japanese exports and foreign inward investment due to the falling external demand, instability and strong uncertainty in the world economy during the financial crisis in the USA and other developed countries). Nevertheless, the economic slump in Japan was fuelled by low domestic demand and investment as well. The aim of this study is to remind of and analyse the most important trends, achievements and problems of the Japanese economy in 2007-2010. It focuses especially on the economic crisis in 2008- 2009, development of Japanese external trade during the crisis and the governmental countermeasures, both fiscal and monetary. The study outlines the development of the Japanese economy both before and after the crisis.