The challenges of Asia in the near future and the cooperation with Portugal

Abstract

There are various dimensions to talk about Japan’s economy, especially when it comes to do with its relationship with Asia. Today, I would like to start with the deflation that Japan has been experiencing over the past 30 years. This trend is the unique case among OECD member countries. In particular, from 1995 to 2021, negative inflation (which means deflation) was observed in 15 years. During the said period, even when positive inflation rates had occurred, its rate was near zero, and only three years exceeded 1%. In fact, this deflation reflects one aspect of the impacts of the expansion of economic globalization. The period of deflation in Japan’s economy roughly coincides with the globalization trend that began in earnest after the end of the Cold War. Globalization has brought an unprecedentedly rapid and extensive movement of goods, money, and people. As a free-trade-system believer, Japan has promoted free trade in both multi and bi-lateral contexts.