Macroeconomic Similarities Between Germany, Japan And The United States

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The Countries of Germany, Japan and the United States have many macroeconomic similarities as well as historical ties between them. After their engagement in World War II (with the US emerging as the victor) these three nations are among the richest in the world today. Now close allies, the United States with its growing budget deficit has heavily depended on these two nations as its primary bankers. Both Japan and Germany are in a state of economic growth. The two are closer in population size with a mean of about a hundred million people. The United States is far larger in size and has a population of over 300 million people. Germany and Japan are also closer in population density than the United States and have the same birth rate at 1.4…show more content…
Table 2-2 shows these trends for the years between 2008 and 2013 as well. In 2013, GDP composition by sector consisted of 0.8% agriculture, 30.1% industry, and 69% services. Furthermore, the GDP by end use consisted of 57.6% household consumption, 19.4% government consumption, 17.5% investment in fixed capital, 0.1% investment in inventories, and 5.4% net exports. The GDP per capita in 2008 was $36,009 compared to $38,219 in 2013 (CIA World Fact Book, 2014). Germany did see a sharp decline in its economic activity around 2009 and 2010, however this decline was not nearly as sharp as the recession in the U.S. and Germany was able to recover much more…show more content…
The government in Japan has direct participation from the citizens. This makes it easier for the government to consult people and control and seize businesses. The GDP for Japan in 2008 was $4850 trillion (USD). Also in 2008, the government budget was below -3 and currently is -7.6. The debt in Japan in 2008 was about $200,000 in terms of external debt and in 2014 it has dropped to about $191,000. The crisis in 2008 had Japan in several set backs. However, they were able to make a secure recovery from their debts and government
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