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Japan Economy

Submitted by Batfink on May 7, 2006

Category: Business
Words: 2051 | Pages: 9
Views: 459
Popularity Rank: 21,362
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James Ruse Agricultural High School
Economics – Preliminary Course 2006
Assessment Task – Group Research

TOPIC: A comparison of the Australian economy with one other economy.

Question 1
Size and structure of the economy, including:
• GDP,
• GDP per capita,
• Relative importance of primary, secondary and tertiary sectors,
• Role of government in the economy, including provision of health care, education and welfare payments,
• Openness (to both trade and financial flows).

Japan and Australia represent two developed economies; in 2005 Japan had the 4th highest GDP (PPP ) in the world ($3.867 trillion), and Australia ranking 18 ($642.7 billion). Although Japan's entire GDP is significantly higher, Australia's per capita GDP score is better.

Japan Australia
GDP (purchasing power parity) $3 867 000 000 000
or ($3.867 trillion) $642 700 000 000
or ($642.7 billion)
GDP (official exchange rate) $4 955 000 000 000
or ($4.955 trillion) $649 900 000 000
or ($649.9 billion)
GDP (real growth rate) 2.1% 2.7%
GDP (per capita)
(purchasing power parity) $30 400 $32 000
GDP (composition by sector)
Primary
Secondary
Tertiary
4.0%
26.4%
69.6%
1.3%
25.3%
73.5%
Figure 1: GDP comparison of Japan and Australia
(Source: CIA World Fact book 2006)

‘Agriculture and mining played a significant role in Australia' (Encarta 2006), and is a ‘major exporter of wheat, meat, dairy products and wool' (Encarta 2006). These are among the primary industries of Australia, accounting for 6% of GDP. The secondary/manufacturing sector, including iron and steel production has grown to 26% of Australia's 2005 GDP. The tertiary sector, especially the financial sector (22% GDP), has also grown substantially...

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