The big economic issue on the agenda at the G7 is the continued sluggish growth of the global economy. While the group of seven major advanced countries does not include rising powers such as India and China, it still accounts for more than a third of the world’s GDP. Plus, its limited membership of “like-minded countries” means it may be one of few meetings that can actually make a difference.
It is perhaps fitting that this year’s G7 is hosted by Japan, where weak growth and deflationary forces have held back the economy for some 26 years. The Japanese experience presents both a warning, but also useful lessons about what might work, and what doesn’t work when it comes to boosting growth.
I Word Understanding
Sluggish growth – inactive
Global economy – the economy of the world, considered as the international exchange of goods and services that is expressed in monetary units of account
Like-minded countries – having similar taste or opinions
Deflationary – A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money
G7– Group of Seven. The world’s seven most powerful industrialised countries – the US, Japan, Germany, the UK, France, Italy and Canada. The EU is also represented.
II Have your say
1.What kinds of Industries do 7 most powerful industrialized countries have?
2.The March 2011 Great East Japan Earthquake and resulting tsunami caused a large contraction in economic output, with GDP falling by 2.6% in the first half of 2011. Basic Act on Reconstruction in Response to the Great East Japan Earthquake” (the Act No. 76 of 2011) has enacted by the Japanese government thru Reconstruction Agency.
List of Japan’s Reconstruction Project for the first 5 years Y 25 trillion yen ($250 billion) was allocated.
- Support for evacuees (the number of evacuees 174,000) (470,000 as its peak
- Housing Reconstruction and Community Development: Rate of completion relocation: 32% Public housing:49%
- Reviving Industries & Livelihoods; Agriculture 74 % of farmlands, Seafood Processing 86% have reopened, Tourism
- Revitilizing & Reconstruction Fukushima
- Creating of New Tohuko