Global Economics Update: Japan as Number 3
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Volume I | Issue 2 | April 2012
In 1995, a group of Cornell psychologists found that Olympic bronze medalists are typically happier than silver medalists about their position on the podium. The competitor in the number 2 spot cannot help thinking about how close he came to winning gold, while the person in third thinks, “Wow, I got a medal!”
By this standard, Japan—third in the global GDP standings since China overtook it in 2010—should feel good about itself. With nearly $6 trillion in annual output and many areas of competitive strength, Japan remains a heavyweight in the global economy.
Yet two recent reports from Tokyo raise serious doubts about how long Japan can remain on the GDP medal podium.
Matthew P. Goodman
Former Senior Vice President for Economics