The Economy of the Empire of Japan refers to the period in Japanese economic history in Imperial Japan that began with the Meiji Restoration in 1868 and ended with the Surrender of Japan in 1945 at the end of World War II. It was characterized by a period of rapid industrialization in the late nineteenth and early twentieth centuries, and the dominance of a wartime economy from 19381945. Tokyo Industrial Exhibition, 1907
After a mild economic slump in the mid 1980s, Japan39;s economy began a period of expansion in 1986 that continued until it again entered a recessionary period in 1992. Economic growth averaging 5% between 1987 and 1989 revived industries, such as steel and construction, which had been relatively dormant in the mid 1980s, and brought record salaries and employment.
The economy of Japan is a highly developed free market economy. It is the third largest in the world by nominal GDP and the fourth largest by purchasing power parity . It is the world39;s second largest developed economy. Japan is a member of both the G7 and G20.