Source: Foundation for Economic Education
by Jake Scott
“Many have welcomed Japan’s recent economic recovery after several years of contraction, but the current circumstances are fragile at best. As of August 2025, Japan’s economy, the fifth-largest globally by nominal GDP and purchasing power parity, embodies a weak recovery undermined by overreliance on government intervention: GDP growth is limp — flat in Q1 and only marginal in Q2 — barely avoiding recession. The lessons from the past must be heeded if Japan’s economic situation is to be navigated intelligently: state intervention may work in the short term, but will ultimately stifle dynamism and growth in the long term.” (08/25/25)