Economic anorexia

Economic anorexia - the chronic inability of the state to consume its production. Situation that leads to surplus exports over imports, trade imbalances, stockpiles, and ultimately economic collapse. This term was created by Richard Katz, who used it for the first time in his book, "The System That Soured" (1998) on the Economic Crisis in Japan in the 1980s.

The state of economic anorexia is characterized by a very high level of permanent investment in the state and an abnormally low level of internal consumption. Undertakings and export sectors are strong and developing at a very fast pace, unlike crisis survivors and weakening sectors geared to meeting domestic demand.

This problem arises in countries that have so far pursued intensive export-oriented policies but reached a level at which further development of exports at the current pace is impossible. In order to prevent economic slowdown and even crisis, the governments of these countries should ensure the growth of domestic consumption. Existing economic policies supporting exports should replace the economic model, driven by internal demand. The government may for some time try to maintain its current level of economic growth, for example by investing enormously in investment and by promoting exports of domestic products. However, without the necessary transformation, such economic policy is unstable in the long run and will ultimately lead to a collapse of the economy.

This problem mainly affects Southeast Asian countries. Economic anorexia has been described in Japan in the 1980s and the current state of the economy in China, with China having a significant export advantage over imports on an scale comparable to that in Japan. The phenomenon of Japan and China

Based on the data, we can see how low domestic demand is in China. It is only 35% of GDP, while in Japan, even in the worst of the crisis, it has never fallen below 58% of GDP. China is therefore heavily dependent on exports and will react very strongly to any economic problems and decline in global consumption. This could be the economic crisis in China, which, given the magnitude of this country, will affect the global economy. The economic anorexia in China and the delay of the Chinese government with the necessary transformations are a threat to the economies of the world. Bibliography

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