Korea and Japan ― a tale of two countries

Korea and Japan ― a tale of two countries

Korea and Japan ― a tale of two countries
Local Japanese News In English

Over the past two decades, as Japan has gradually slipped down the OECD ladder in terms of GDP per capita, Korea has progressively climbed the same ladder. It's just a matter of time before Korea overtakes its neighbor. How could this happen One important factor has been how the two countries have responded to crises. Japan was struck down by the collapse of its bubble economy two decades ago, and was also badly hit by the global financial crisis in 2008. Despite many calls for structural reforms, Japan has sought to keep its economy afloat by continued fiscal stimulus, rather than swallowing the necessary bitter medicine. The result is that Japan's public debt is now over 200 percent of GDP, and the economy is no stronger for it. By contrast, Korea has taken its structural reform agenda much more seriously, and is benefiting greatly from it. (Korea Herald)
Source: News On Japan