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In & Out Burger Cookout
Makayla MylesApril 3, 2024

In-N-Out is coming to our school for Eligible 6th & 7th Graders. From 1:19-3:15 pm  on the Honor Court Lawn & Covered Eating Area.

Japan Heads Into Unexpected Recession

The Japanese economy has fallen from their place as the 3rd biggest economy after suffering an economy shrink for two quarters in a row.

The GDP (Gross Domestic Product) of Japan has shrunk by 0.4% during the fourth quarter of 2023 compared to the year before. This was not expected, as many economists predicted a growth of 1%. This comes after growth rates went down by 3.3% in the third quarter, one of the largest contractions in a while. Two quarters in a row of a shrinking GDP are typically considered an economic recession.

A graph showing Japan’s stagnation in economic growth compared to the US.

Japan’s economy faltered in the 1990s, due to an asset bubble that had been building up since the ’80s. This pushed Japan into a period of stagnation and deflation, known as the Lost Decade, now plural.

Figures from the Japanese Cabinet Office also show that Japan has been overtaken by Germany in GDP. As of 2023, Japan’s GDP was $4.2 trillion compared to Germany’s $4.4 trillion, according to economist Neil Newman. This was most likely due to the Japanese yen decreasing in value, and Newman states that if the yen recovers, Japan could potentially regain its position as one of the 3 largest economies.

However, the weakness of the yen has helped boost the share prices of many big companies as it makes Japanese exports cheaper overseas. This week, Tokyo’s Nikkei 225, the city’s main stock index, crossed $38,000 for the first time since 1990. This is because 1990 saw a collapse in Japanese property prices which caused an economic crisis. The Nikkei 225 had its record high stock price in 1989, priced at 38,915.87.

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About the Contributor
Mikael Ronaque, Head of Department (World News)/Editor in Chief
Hello. I am Mikael, Head of Department of World News. I am a 7th grader at the time of writing and I edit/publish articles on this website. I am an Indian. I aim to write about various things around the world with as little bias as possible.

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