Though it recovered in the second half of the year, Japan’s economy barely grew in 2024 as a depreciated yen fueled inflation and strained households.The New York Times reports that Japan’s economy barely grew in 2024, despite a recovery in the second half of the year. This was due to a depreciated yen, which fueled inflation and strained households. While a weak currency is often seen as a way to boost a country’s economy, the reality in Japan has been quite different. While big companies like Toyota Motor saw record profits, the majority of Japanese households have been hit hard by rising costs of basic living expenses. This has resulted in a slowdown in household spending and a meager 0.1 percent growth rate for the economy in 2024. This serves as a cautionary tale for countries, like the United States, that are considering weakening their currency to stimulate exports. The lesson to be learned is that while a depreciated currency may help exports, it can also have a detrimental effect on consumer purchasing power and overall economic growth.
Source:Read More