United States Vs. Japan Economic State

United States vs. Japan economic state.

The United States of America is one of the world leading economic powers in the world. The question is, how does the Unites States compare to other nation powers.Australia ,Cananda , China and Britain are just a few of the nation powers that can compare to the United states. This report will focus more one of the main rivials to the United States and that is Japan. Here is just a sample of Japans Numbers for 2004 compared to the United States. Unite States GDP growth is 4.30% ,unemployment is 5.60% and Inflation Rate is 1.90%. In Japan the GDP growth is 4.50% , unemployment is 4.60% and Inflation Rate is -.04%. . I think this is an important perspective because we really do live in a global economy, and so are always in a very competitive struggle to retain our world economic leadership.

The Gross Domestic Product is traditionally is very solid for the United Staes and Japan. . Here again, the U.S. posts very good numbers. Japan posted its country best GDP in the last 14 years with an outstand 4.5% growth.. The size of the Japan economy is roughly one-half that of the U.S. economy. Japan's economy can grow much more rapidly on a percentage basis from its smaller base, even though the absolute dollar value of our growth is greater

Unemployment has fallen to 4.6% down from a high of 5.5% in early 2003 for Japan. As in the United States unemployment has also fallen from the pervious year to 4.60%. Inflation has the potential to erase the purchasing power of any wage gains if it is unchecked or eliminate any chance for wage gains if it turns negative and into deflation. The U.S. has reached the even level of inflationÐ'--not too hot and not too cold. The Japanese have endured a decade of near zero inflation ,and as of 2004, a outright deflation. However, the Japanese economy shows signs of climbing out of its funk based on it strong GDP showing.

Lets look at the Japan and United States Economics numbers for 2004.

Currency: Japan uses the Yen, as The United States Uses the dollar. Exchange Rate 12/31/04 US=$1 and Yen = 110.5. Gross Domestic Product (GDP, at market exchange rate) $4.8 trillion for Japan and for the United States it is $11.50 trillion for 2004. Inflation Rate (consumer prices) Japan actually as a deflation of -0.4% as the United States as a inflation rate of 1.90%. Current Account Balance (2004F): $174.1 billion for Japan and the United States is 187.9 billion .Major Trading Partners for both countries.: Germany, Asian NIEs, China, OPEC Merchandise Exports (2004F): $522.4 billion for Japan and $630.57 billion for the United States. Merchandise Imports (2004F): $395.9 billion for Japan and 647 billion for United States. Merchandise Trade Surplus (2004F): $126.5 billion for Japan and for the United States it is $167 billion. Major Export Products for Both Countries: Machinery and transport equipment; chemical and other manufactured goods Major Import Products both countries: Chemical and other manufactured goods; machinery and transport equipment; mineral fuels; foodstuffs; crude material.

One