Effects of Economic crisis on Tokyo Essay Example | Topics and Well Written Essays - 3250 words

Effects of Economic crisis on Tokyo - Essay Example The world today is going through recession, and just as everything else is going global, so is the recession. A number of big-economies and states have readily declared recession officially, while an even bigger number is trying to fight it out, however, unofficially, they are under recession as well. The phenomenon is not just restricted to the west where UK has declared official recession but stands valid for other parts of the world as well, where economies as strong as Japan have declared official recession. Japan is rightly considered the second largest economy in the world, existing today, or just before the recessionary scenario. The major point is how the government plans to revive its economy. There are a number of plans being put forth as discussed in the later part of this report. The only determinant point is the fact that when these proposed plans would actually be put in to action. The urgency of this matter is a sure ground because the global financial crisis is on the rise and more and more economies are on the urge of declaring official recession. At this point in time, Tokyo needs to stand out and initiate its plan of action, because it is through this initiation only that all the suffering economies in Asia would benefit from, and ultimately lead the world out of this crisis. Following the 9/11 incident and the occurrence of ‘mad cow disease’, economists were forecasting the commencement of an intense recession in Japan. Another major reason underlying this strong forecast was the global economic downturn. Recently released surveys of future trends together with economic data recording economic performance over recent months point at least to the onset of Japan’s fourth official recession — defined as two consecutive quarters of negative growth— in the space of a decade.