Part 6/11:
Japan's unprecedented growth faced a significant setback with the oil crisis of 1973, revealing its heavy reliance on imported energy resources. Prices soared, and inflation reached nearly 25%. Although Japan diversified its energy sources, the crisis diminished investor confidence and slowed economic growth, dropping from 10% to around 5% by the late 1970s.
However, by then, Japan had emerged as the second-largest economy in the world. The 1980s saw soaring property prices, with land valued highly due to Japan's unique geographic and cultural context surrounding ownership. This period boasted a dramatic rise in the market value of Japanese corporations, leading to a widespread perception that Japan was on the path to outpacing the United States.