After WWII, Japan faced huge economic problems. The unemployment rate in Japan was high due to the return of a large number of soldiers. Many houses and factoies were destroyed. in 1945, rice production was only at 2/3 of the pre-war level. War damage accounted for 1/4 of the country's wealth.
During the SCAP period, Japanese economy was on the stage of recovery. In 1945, Japan's GNP per capita was only US$17. In 1950, it rose to US$132. In 1945, Japan's industrial production index was only 10. It rose to 55 in 1948 and 84 in 1950. In 1952, Japanese economy was totally recovered. In this period, Japan fouced on the production of coal, steel and cement in order to prepare for the development of other industries in the future.