Despite the current economic crisis, which remains as a mystery, NICs experienced a rapid economic growth over the last 40 years.
Economic growth refers to an increase in the productive capacity of an economy.
Japan was the first country to experience a rapid economic growth in Asia. Its economy continued to expand rapidly from the mid-1950s through the 1960s. The high level of saving of Japanese households provided banks and other financial institutions with large funds for heavy investment in the private sector. The rapid increase in capital spending was associated with the introduction of new technology, often under license from foreign companies. Investment for modernization made Japanese industries more competitive on the world market.