The Multifaceted Impact of Yen Depreciation on Japan’s Economy

Xiaohuang: DOORM, what are the impacts of yen depreciation on Japan’s economy?

DOORM: Xiaohuang, yen depreciation has multiple impacts on Japan’s economy. First, it makes Japanese export goods more competitive in international markets, boosting export growth. Second, the depreciation attracts a large number of international tourists to Japan, stimulating the tourism industry and related services. Additionally, increased tourist spending has led to significant growth in the sales of luxury goods, jewelry, and other high-priced items. However, yen depreciation also increases the cost of imported goods, which may lead to domestic inflationary pressures.