 | |
| Currency | Japanese yen (JPY, ¥) |
|---|---|
| 1 April – 31 March | |
Trade organisations | APEC,WTO,CPTPP,RCEP,OECD,G-20,G7 and others |
Country group | |
| Statistics | |
| Population |  123,262,483 (2025) |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
GDP by component |
|
| 3.1%[when?] | |
| 33.8medium (2021)[7] | |
| |
| 71 out of 100 points (2024)[9] (rank 20th) | |
Labour force | |
Labour force by occupation |
|
| Unemployment | |
Average gross salary | ¥452,247 / US$3,106 monthly[14][15] (2024) |
| ¥352,541 / US$2,421 monthly[16][17] (2024) | |
Main industries | |
| External | |
| Exports |  $928 billion (2024)[18] |
Export goods |
|
Main export partners |
|
| Imports | $932.1 billion USD (2024)[19] |
Import goods |
|
Main import partners |
|
FDI stock | |
| $58.108 billion (2022)[21] | |
Grossexternal debt |  $4.54 trillion (March 2023)[22](103.2% of GDP) |
| Public finances | |
| |
| US$1.255 trillion (September 2024)[23] | |
| 1.35% of GDP (2022 est.)[21] | |
| Revenues | ¥196,214 billion[21] 35.5% of GDP (2022)[21] |
| Expenses | ¥239,694 billion[21] 43.4% of GDP (2022)[21] |
| Economic aid | donor:ODA, $10.37 billion (2016)[24] |
All values, unless otherwise stated, are inUS dollars. | |
Japan has ahighly developedmixed economy, often referred to as anEast Asian model.[27] According to theIMF forecast for 2025, it will be the fifth-largest economy in the worldby nominal GDP and the fifth-largestby purchasing power parity (PPP) by the end of the year.[28] It constituted 3.7% of the world's economy on a nominal basis in 2024. According to the same forecast, the country's nominalper capita GDP (PPP) will be $56,440 (2025).[29][30] Due to a volatile currencyexchange rate, Japan's nominal GDP as measured in American dollars fluctuates sharply.
A founding member of theG7 and an early member of theOECD, Japan was the first country in Asia to achievedeveloped country status. In 2024, Japan was the sixth-largest in the worldas an importer and eight-largestas an exporter.[31][32] The country also has the world'sfourth-largest consumer market.[33] Japan used to run a considerabletrade surplus, but the decline of the manufacturing sector since the 1980s and increased fossil fuel imports after theFukushima nuclear accident in 2011 have changed this trend in recent years.[34][35] Being the world's largestcreditor nation,[36][37][38] Japan has a considerable net international investment surplus. The country has the world'ssecond-largest foreign-exchange reserves, worth $1.4 trillion.[39] Japan has thethird-largest financial assets in the world, valued at $12 trillion, or 8.6% of the global GDP total as of 2020.[40][41] Japan has a highly efficient and strongsocial security system, which comprisesroughly 23.5% of GDP.[4][42][3] TheTokyo Stock Exchange is the world'sfourth-largest stock exchange bymarket capitalisation as of 2025.[43][44]
Japan has a highly service-dominated economy, which contributes approximately 70% of GDP, with most of the remainder coming from the industrial sector.[45] Thecountry's automobile industry, which is the third largest in the world, dominates the industrial sector, withToyota being the world’s largest manufacturer of cars.[46] In 2022, Japan spent around 3.7% of GDP on research and development. As of 2025, 38 of theFortune Global 500 companies are based in Japan.[47]
Long having been an agricultural country, it has been estimated that Japan’s economy was among the top ten in the world by size before the industrial revolution started.[48] Industrialisation in Japan began in the second half of the 19th century with theMeiji Restoration, initially focusing on thetextile industry and later on heavy industries. The country rapidly builtits colonial empire and thethird most powerful navy in the world. After the defeat in theSecond World War, Japan’s economy recovered and developed further rapidly, primarily propelled by its lucrative manufacturing exporting industries.[49] It becamethe second largest economy in the world in 1988 and remained so until 2010,[50] and on a nominal per capita basis, the most high-income among the G7 countries in the 1980s and 1990s.[51] In 1995, Japan’s share of the world’s nominal GDP was 17.8%, reaching approximately 71% of that of the United States.[50]
Driven by speculative investments and excessive lending, theJapanese asset price bubble of the early 1990s burst, triggering a prolonged period of economic stagnation marked by deflation and persistently low or negative growth, now known as theLost Decades. From 1995 to 2023, the country’s GDP fell from $5.5 trillion to $4.2 trillion in nominal terms.[52] At the turn of the 21st century, theBank of Japan set out to encourage growth through a policy ofquantitative easing, with the central bank purchasing government bonds at an unprecedented scale to address the persistingdeflationary pressure.[53][54] In 2016, the Bank of Japan introduced anegative interest policy to stimulate economic growth and combat persistent deflationary pressure. A combination of domestic policies and global economic conditions helped the country achieve its 2% inflation target, leading to the conclusion of the policy in 2024.[55][56]
As of 2021, Japan has significantly higherpublic debt than other developed nations, at approximately 260% of GDP.[57][58] 45% of this debt is held by the Bank of Japan, and most of the remainder is also held domestically.[57] The Japanese economy faces considerable challenges posed by anageing and declining population, which peaked at 128.5 million people in 2010 and has fallen to 122.6 million people in 2024.[59] In 2024, the country's working age population consisted of approximately 59.6% of the total population, which was the lowest rate among all the OECD countries.[60] According to 2023 government projections, the country's population will fall to 87 million by 2070, with only 45 million of working age.[61]
The economic history of Japan is one of the most studied. Major milestones in modern Japan's economic progress include:
The beginning of theEdo period coincides with the last decades of theNanban trade period, marked by intense interaction with European powers. Japan built its first Western-style warships, such as theSan Juan Bautista, and commissioned around 350Red Seal Ships for intra-Asian commerce. Japanese adventurers, such asYamada Nagamasa, were active throughout Asia.[62]
To eradicateChristian influence, Japan entered a period of isolation calledsakoku in the 1630s, which led to economic stability and mild progress. In the 1650s,Japanese export porcelain production increased significantly due toa civil war in China, mainly inKyushu.[63] This trade dwindled by the 1740s under renewed Chinese competition but resumed after Japan’s mid-19th century opening.
Economic development during the Edo period includedurbanisation, increased commodity shipping, and expanded domestic and foreign commerce. The construction trades, banking facilities, and merchant associations flourished.Daimyō-led authorities (han) oversaw rising agricultural production and rural handicrafts. By the mid-18th century, Edo had a population of over 1 million, while Osaka and Kyoto each had more than 400,000 inhabitants, becoming centres for trade andhandicraft production.[64] Rice, the economy’s base, was taxed at about 40% of the harvest and sold at the fudasashi market in Edo.Daimyō usedforward contracts similar to modern futures trading to sell rice before harvest.[65]
During thesakoku period, Japan studied Western sciences and techniques (rangaku) through Dutch traders in Dejima, including geography, medicine, natural sciences, astronomy, and mechanical sciences. Japan reopened its economy to the West after being pressured by theUnited States twice in 1853 and 1854.[66]
Since the mid-19th century, after theMeiji Restoration, the country was opened up to Western commerce and influence and went through a period of economic development that extended through to theFirst World War.[67] Economic developments of theprewar period began with the "Rich State and Strong Army Policy" by theMeiji government. During theMeiji period (1868–1912), leaders inaugurated a new Western-based education system for all young people, sent thousands of students to Europe and the United States, and hired more than 3,000 Westerners to teach modern science, mathematics, technology, and foreign languages in Japan (Oyatoi gaikokujin). The government also built an extensive railway network, improved roads, and inaugurated a land reform program to prepare the country for further development.[68]
To promoteindustrialisation, the government decided that, while it should help private business to allocate resources and to plan, the private sector was best equipped to stimulate economic growth. The greatest role of government was to help provide good economic conditions for business. In short, government was to be the guide and business the producer. In the early Meiji period, the government built factories and shipyards that were sold to entrepreneurs at a fraction of their value. Many of these businesses grew rapidly into the largerconglomerates such asMitsubishi. Government emerged as chief promoter ofprivate enterprise, enacting a series of pro-business policies.[69]
Japan underwent significant economic transformation and rapid recovery and growth, emerging from the devastation of theSecond World War to become a global economic powerhouse. The immediate post-war period saw Japan slowly recovering as a democratic nation under theAllied Occupation. TheKorean War (1950–1953), which happened in its now divided former colony, boosted the economy, as Japan served as a major supply hub for U.S. forces. By the 1950s and 1960s, Japan’s economy had entered a period of high growth, often referred to as the 'Japanese Economic Miracle'. Key factors in this growth included government-industry cooperation, a strong work ethic, advanced technology, and a focus on export-orientedmanufacturing. Japan’s economy diversified from textiles to steel, shipbuilding, and eventually electronics and automobiles, with companies such asToyota,Sony,Hitachi andHonda becoming household names worldwide.[70]
In 1968, Japan became the world’s third-largest economy then the second largest in 1988, surpassing the Soviet Union, a position it held until it was surpassed by China in 2010. The government played a crucial role through policies that promoted industrial expansion and technological advancement. Japan’s emphasis on quality control and continuous improvement (kaizen) further boosted its international competitiveness.[71] By the 1980s, Japan was leading in a wide range of industries, including automotive and consumer electronics, and was known for its formidable trade surplus and wealth.[72] However, the late 1980s also saw the infamousPlaza Accord and the formation of an asset price bubble, with inflated real estate and stock market prices, setting the stage for the economic stagnation of the 'Lost Decades' that followed.
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Growth slowed markedly in the late 1990s, also termed theLost Decade, after the collapse of theJapanese asset price bubble. As a consequence Japan ran massive budget deficits (added trillions in yen to the Japanese financial system) to finance largepublic works programs.
By 1998, Japan's public works projects still could not stimulate demand enough to end the economy's stagnation. In desperation, the Japanese government undertook "structural reform" policies intended to wring speculative excesses from the stock and real estate markets. Unfortunately, these policies led Japan into deflation on numerous occasions between 1999 and 2004. The Bank of Japan usedquantitative easing to expand the country's money supply in order to raise expectations of inflation and spur economic growth. Initially, the policy failed to induce any growth, but it eventually began to affect inflationary expectations. By late 2005, the economy finally began what seems to be a sustained recovery. GDP growth for that year was 2.8%, with an annualised fourth quarter expansion of 5.5%, surpassing the growth rates of the US andEuropean Union during the same period.[75] Unlike previous recovery trends, domestic consumption has been the dominant factor of growth.
Despite having interest rates down near zero for a long period of time, the quantitative easing strategy did not succeed in stopping price deflation.[76] This led some economists, such as Paul Krugman, and some Japanese politicians, to advocate the generation of higher inflation expectations.[77] In July 2006, the zero-rate policy was ended. In 2008, the Japanese Central Bank still had the lowest interest rates in the developed world, but deflation had still not been eliminated[78] and the Nikkei 225 has fallen over approximately 50% (between June 2007 and December 2008). However, on 5 April 2013, theBank of Japan announced that it would be purchasing 60–70 trillion yen in bonds and securities in an attempt to eliminate deflation by doubling the money supply in Japan over the course of two years. Markets around the world have responded positively to the government's current proactive policies, with theNikkei 225 adding more than 42% since November 2012.[79]The Economist has suggested that improvements to bankruptcy law, land transfer law, and tax laws will aid Japan's economy. In recent years, Japan has been the top export market for almost 15 trading nations worldwide.
In December 2018, afree trade agreement between Japan and theEuropean Union was cleared to commence in February 2019. It creates the world's largestfree trade zone valued at 1/3rd of global gross domestic product. This reduces tariffs on Japanese cars by 10%, duties by 30% on cheese and 10% on wines and opens service markets.[80]
In early January 2020, Japanese economy began to suffer from theCOVID-19 pandemic. In early April, Japanese Prime MinisterShinzo Abe announced astate of emergency.[81][82] Less than a quarter of Japanese people expected living conditions to improve in the coming decades.[83] In October 2020 during the pandemic, Japan and theUnited Kingdom formally signed the first free-trade agreement post-Brexit, which will boost trade by approximately £15.2 billion. It enables tariff-free trade on 99% of exports to Japan.[84][85] On 15 February 2021, the Nikkei average breached the 30k benchmark, the highest since November 1991.[86] It was due to strong corporate earnings, GDP data and optimism over theCOVID-19 vaccination program in the country.[86]
At the end of March 2022, theMinistry of Finance announced that the national debt reached precisely 1.017 million billion yen.[87] The total public debt of the country, which includes debts contracted by local governments, represents 1.210 million billion yen (9,200 billion dollars) which is nearly 250% of Japan's GDP.[87] Economist Kohei Iwahara said such an exceptional debt to GDP level is only possible because Japanese hold most of the debt: "“Japanese households hold most of their savings in bank accounts (48%) and these sums are used by commercial banks to buy Japanese government bonds. Thus, 85.7% of these bonds are held by Japanese investors.”[87]
TheBank of Japan's main policy aim since the Lost Decades started had been to enddeflation and eventually achieve 2%inflation.[54] The increased international economic tension brought about by events such as the2022 Russian invasion of Ukraine finally helped the country achieve the much-anticipated inflation target of 2%, and thenegative interest policy was ended in March 2024.[55][56] However, while other major economies focus on suppressing inflation by raising interest rates, Japan aims to firmly establish inflation by maintaining low rates. As a side effect, theJapanese yen has become extremely weak, hitting a 37.5-year low of 161 yen/USD in July 2024.[88][89] Furthermore, thereal effective exchange rate in May 2024, when the 2020 average is set at 100, is 68.65, the lowest level since the start of the Bank of Japan statistics in January 1970, due to a combination of low inflation in Japan and a relatively low trade share.[90][91][92][93] This devaluation of the currency caused Japan to lose its status as theworld’s third largest economy toGermany in nominal terms, which was approximately half the size of the country's economy a decade earlier.[94][95][96]
Factors such as an apparent end to the 30-year struggle against deflation, improvements in corporate governance, and high corporate profits boosted the stock market. Consequently, both theNikkei 225 andTOPIX indices surpassed the record highs they reached more than 30 years ago in 2024. The market capitalisation of the Tokyo Stock Exchange’s prime section exceeded a quadrillion yen for the first time in July 2024.[97]
Industries by GDP value-added 2012.[98] Values are converted using the exchange rate on 13 April 2013.[99]
| Industry | GDP value-added billions 2018 | % of total GDP |
|---|---|---|
| Other service activities | 1,238 | 23.5% |
| Manufacturing | 947 | 18.0% |
| Real estate | 697 | 13.2% |
| Wholesale and retail trade | 660 | 12.5% |
| Transport andcommunication | 358 | 6.8% |
| Public administration | 329 | 6.2% |
| Construction | 327 | 6.2% |
| Finance and insurance | 306 | 5.8% |
| Electricity,gas andwater supply | 179 | 3.4% |
| Government service activities | 41 | 0.7% |
| Mining | 3 | 0.1% |
| Total | 5,268 | 100% |
The following table shows the main economic indicators in 1980–2023 (with IMF staff estimates in 2024–2029). Inflation under 5% is in green.[100]
| Year | GDP (in bn. US$PPP) | GDP per capita (in US$ PPP) | GDP (in bn. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in Per cent) | Unemployment (in Per cent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 1,068.1 | 9,147.0 | 1,127.9 | 9,659.0 | 3.2% | 7.8% | 2.0% | 47.8% |
| 1981 | 1,218.4 | 10,358.1 | 1,243.8 | 10,574.4 | 4.2% | 4.9% | 2.2% | 52.9% |
| 1982 | 1,336.5 | 11,283.0 | 1,157.6 | 9,772.8 | 3.3% | 2.8% | 2.4% | 57.8% |
| 1983 | 1,437.8 | 12,054.5 | 1,268.6 | 10,636.5 | 3.5% | 1.9% | 2.7% | 63.6% |
| 1984 | 1,556.7 | 12,967.1 | 1,345.2 | 11,205.4 | 4.5% | 2.3% |  2.7% | 65.6% |
| 1985 | 1,690.0 | 13,989.8 | 1,427.4 | 11,815.8 | 5.2% | 2.0% |  2.6% | 68.3% |
| 1986 | 1,781.4 | 14,667.9 | 2,121.3 | 17,466.7 | 3.3% | 0.6% | 2.8% | 74.0% |
| 1987 | 1,911.8 | 15,666.3 | 2,584.3 | 21,177.8 | 4.7% | 0.1% | 2.9% | 75.7% |
| 1988 | 2,113.5 | 17,246.0 | 3,134.2 | 25,575.1 | 6.8% | 0.7% | 2.5% | 71.8% |
| 1989 | 2,303.0 | 18,719.6 | 3,117.1 | 25,336.2 | 4.9% | 2.3% | 2.3% | 65.5% |
| 1990 | 2,506.1 | 20,302.7 | 3,196.6 | 25,896.0 | 4.9% | 3.1% | 2.1% | 63.0% |
| 1991 | 2,679.4 | 21,620.8 | 3,657.3 | 29,511.8 | 3.4% | 3.3% | 2.1% | 62.2% |
| 1992 | 2,763.7 | 22,222.4 | 3,988.3 | 32,069.1 | 0.8% | 1.7% | 2.2% | 66.6% |
| 1993 | 2,814.6 | 22,558.2 | 4,544.8 | 36,425.2 | -0.5% | 1.3% | 2.5% | 72.7% |
| 1994 | 2,899.9 | 23,177.4 | 4,998.8 | 39,953.2 | 0.9% | 0.7% | 2.9% | 84.4% |
| 1995 | 3,038.6 | 24,224.0 | 5,545.6 | 44,210.2 | 2.6% | -0.1% | 3.2% | 92.5% |
| 1996 | 3,191.2 | 25,385.0 | 4,923.4 | 39,164.3 | 3.1% | 0.1% | 3.4% | 98.1% |
| 1997 | 3,278.1 | 26,014.1 | 4,492.4 | 35,651.3 | 1.0% | 1.7% | 3.4% | 105.0% |
| 1998 | 3,272.8 | 25,903.3 | 4,098.4 | 32,436.9 | -1.3% | 0.7% | 4.1% | 116.0% |
| 1999 | 3,307.9 | 26,131.3 | 4,636.0 | 36,622.9 | -0.3% | -0.3% | 4.7% | 129.5% |
| 2000 | 3,476.3 | 27,409.2 | 4,968.4 | 39,173.0 | 2.8% | -0.7% | 4.7% | 135.6% |
| 2001 | 3,568.4 | 28,068.3 | 4,374.7 | 34,410.7 | 0.4% | -0.7% | 5.0% | 145.1% |
| 2002 | 3,625.5 | 28,457.7 | 4,182.8 | 32,832.3 | 0.0% | -0.9% | 5.4% | 154.1% |
| 2003 | 3,753.8 | 29,410.9 | 4,519.6 | 35,410.2 | 1.5% | -0.3% | 5.2% | 160.0% |
| 2004 | 3,938.9 | 30,836.4 | 4,893.1 | 38,307.1 | 2.2% | 0.0% | 4.7% | 169.5% |
| 2005 | 4,135.7 | 32,372.7 | 4,831.5 | 37,819.1 | 1.8% | -0.3% | 4.4% | 174.3% |
| 2006 | 4,321.8 | 33,831.1 | 4,601.7 | 36,021.9 | 1.4% | 0.3% | 4.1% | 174.0% |
| 2007 | 4,504.5 | 35,257.9 | 4,579.7 | 35,847.2 | 1.5% | 0.0% | 3.8% | 172.8% |
| 2008 | 4,534.6 | 35,512.2 | 5,106.7 | 39,992.1 | -1.2% | 1.4% | 4.0% | 180.7% |
| 2009 | 4,303.9 | 33,742.5 | 5,289.5 | 41,469.8 | -5.7% | -1.3% | 5.1% | 198.7% |
| 2010 | 4,534.1 | 35,535.2 | 5,759.1 | 45,135.8 | 4.1% | -0.7% | 5.1% | 205.7% |
| 2011 | 4,629.4 | 36,215.1 | 6,233.1 | 48,760.9 | 0.0% | -0.3% | 4.6% | 219.1% |
| 2012 | 4,799.6 | 37,628.8 | 6,272.4 | 49,175.1 | 1.4% | 0.0% | 4.3% | 226.1% |
| 2013 | 5,021.6 | 39,436.8 | 5,212.3 | 40,934.8 | 2.0% | 0.3% | 4.0% | 229.6% |
| 2014 | 5,034.5 | 39,604.1 | 4,897.0 | 38,522.8 | 0.3% | 2.8% | 3.6% | 233.5% |
| 2015 | 5,200.9 | 40,959.3 | 4,444.9 | 35,005.7 | 1.6% | 0.8% | 3.4% | 228.3% |
| 2016 | 5,159.7 | 40,640.5 | 5,003.7 | 39,411.4 | 0.8% | -0.1% | 3.1% | 232.4% |
| 2017 | 5,248.4 | 41,409.0 | 4,930.8 | 38,903.3 | 1.7% | 0.5% | 2.8% | 231.3% |
| 2018 | 5,403.2 | 42,714.6 | 5,040.9 | 39,850.3 | 0.6% | 1.0% | 2.4% | 232.4% |
| 2019 | 5,471.8 | 43,351.0 | 5,118.0 | 40,548.0 | -0.4% | 0.5% | 2.4% | 236.4% |
| 2020 | 5,314.1 | 42,226.3 | 5,055.6 | 40,171.9 | -4.1% | 0.0% | 2.8% | 258.3% |
| 2021 | 5,700.0 | 45,416.0 | 5,034.6 | 40,114.3 | 2.6% | -0.2% | 2.8% | 253.9% |
| 2022 | 6,159.8 | 49,210.6 | 4,256.4 | 34,004.7 | 1.0% | 2.5% | 2.6% | 257.2% |
| 2023 | 6,507.1 | 52,214.6 | 4,212.9 | 33,805.9 | 1.9% | 3.3% | 2.6% | 252.4% |
| 2024 | 6,721.0 | 54,183.9 | 4,110.5 | 33,138.2 | 0.9% | 2.2% | 2.5% | 254.6% |
| 2025 | 6,908.4 | 55,970.4 | 4,310.4 | 34,921.6 | 1.0% | 2.1% | 2.5% | 252.6% |
| 2026 | 7,094.9 | 57,778.4 | 4,499.5 | 36,642.7 | 0.8% | 2.0% | 2.5% | 251.3% |
| 2027 | 7,271.8 | 59,538.8 | 4,649.1 | 38,064.8 | 0.6% | 2.0% | 2.5% | 251.0% |
| 2028 | 7,451.9 | 61,354.8 | 4,836.3 | 39,819.6 | 0.6% | 2.0% | 2.5% | 251.0% |
| 2029 | 7,628.2 | 63,170.9 | 4,944.7 | 40,948.6 | 0.4% | 2.0% | 2.5% | 251.7% |
The Japanese agricultural sector accounts for about 1.1% (2017) of the total country's GDP.[101] Only 12% of Japan's land is suitable for cultivation.[102][103] Due to this lack of arable land, a system of terraces is used to farm in small areas.[104] This results in one of the world's highest levels of crop yields per unit area, with an overall agricultural self-sufficiency rate of about 50% on fewer than 56,000 km2 (14 million acres) cultivated.
Japan's small agricultural sector, however, is also highly subsidised and protected, with government regulations that favour small-scale cultivation instead of large-scale agriculture as practiced in North America.[102] There has been a growing concern about farming as the current farmers are aging with a difficult time finding successors.[105]
Rice accounts for almost all of Japan's cereal production.[106] Japan is the second-largest agricultural product importer in the world.[106] Rice, the most protected crop, is subject to tariffs of 777.7%.[103][107]
Although Japan is usually self-sufficient in rice (except for its use in making rice crackers and processed foods) and wheat, the country must import about 50% of its requirements of other grain and fodder crops and relies on imports for half of its supply of meat.[108][109] Japan imports large quantities of wheat andsoybeans.[106] Japan is the 5th largest market for the European Union's agricultural exports.[110][needs update] Over 90% ofmandarin oranges in Japan are grown in Japan.[109]Apples are also grown due to restrictions on apple imports.[111]
Japan ranked fourth in the world in 1996 intonnage of fish caught.[112] Japan captured 4,074,580 metric tons of fish in 2005, down from 4,987,703 tons in 2000, 9,558,615 tons in 1990, 9,864,422 tons in 1980, 8,520,397 tons in 1970, 5,583,796 tons in 1960 and 2,881,855 tons in 1950.[113] In 2003, the total aquaculture production was predicted at 1,301,437 tonnes.[114] In 2010, Japan's total fisheries production was 4,762,469 fish.[115] Offshore fisheries accounted for an average of 50% of the nation's total fish catches in the late 1980s although they experienced repeated ups and downs during that period.
Coastal fishing by small boats, set nets, or breeding techniques accounts for about one third of the industry's total production, while offshore fishing by medium-sized boats makes up for more than half the total production. Deep-sea fishing from larger vessels makes up the rest. Among the many species of seafood caught are sardines,skipjack tuna, crab, shrimp, salmon,pollock, squid, clams,mackerel,sea bream,sauries, tuna andJapanese amberjack. Freshwater fishing, including salmon, trout and eel hatcheries and fish farms,[116] takes up about 30% of Japan's fishing industry. Among the nearly 300 fish species in the rivers of Japan are native varieties of catfish, chub, herring and goby, as well as such freshwater crustaceans as crabs and crayfish.[117] Marine and freshwater aquaculture is conducted in all 47 prefectures in Japan.[114]
Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch,[118] prompting some claims that Japan's fishing is leading to depletion in fish stocks such astuna.[119] Japan has also sparked controversy by supporting quasi-commercialwhaling.[120]
Japanese manufacturing and industry is very diversified, with a variety of advanced industries that are highly successful. Industry accounts for 30.1% (2017) of the nation's GDP.[101] The country's manufacturing output is the third highest in the world.[121]
Industry is concentrated in several regions, with theKantō region surrounding Tokyo, (theKeihin industrial region) as well as theKansai region surrounding Osaka (theHanshin industrial region) and theTōkai region surrounding Nagoya (theChūkyō–Tōkai industrial region) the main industrial centers.[122][123][124][125][126][127] Other industrial centers include the southwestern part ofHonshū and northernShikoku around theSeto Inland Sea (the Setouchi industrial region); and the northern part ofKyūshū (Kitakyūshū). In addition, a long narrow belt of industrial centers called theTaiheiyō Belt is found between Tokyo andFukuoka, established by particular industries, that have developed as mill towns.
Japan enjoys high technological development in many fields, includingconsumer electronics,automobile manufacturing,semiconductor manufacturing,optical fibers,optoelectronics,optical media,facsimile andcopy machines, and fermentation processes infood andbiochemistry. However, many Japanese companies are facing emerging rivals from the United States, South Korea, and Taiwan.[128]
_(MSP15).JPG)
Japan is thethird biggest producer of automobiles in the world.[129]Toyota is currently the world's largest car maker, and the Japanese car makersNissan,Honda,Suzuki, andMazda also count for some of the largest car makers in the world.[130][131] By number, Japan is the world's second-largest exporter of cars after China as of 2024.[132]
Japan's mining production has been minimal, and Japan has very little mining deposits.[133][134] However, massive deposits of rare earths have been found off the coast of Japan.[135] In the 2011 fiscal year, the domestic yield of crude oil was 820 thousand kiloliters, which was 0.4% of Japan's total crude processing volume.[136]
In 2019, Japan was the 2nd largest world producer ofiodine,[137] 4th largest worldwide producer ofbismuth,[138] the world's 9th largest producer ofsulfur[139] and the 10th largest producer ofgypsum.[140]
Japan's service sector accounts for 68.7% (2017) of its total economic output.[101] Banking, insurance, real estate, retailing,transportation, and telecommunications are all major industries such asMUFG,Mizuho,NTT,TEPCO,Nomura,Mitsubishi Estate,Aeon,Mitsui Sumitomo,Softbank,JR East,Seven & i Holdings,KDDI andJapan Airlines counting as some of the largest companies in the world.[141][142] two of the fivemost circulated newspapers in the world areJapanese newspapers.[143] TheKoizumi government setJapan Post, one of the country's largest providers of savings and insurance services for privatisation by 2015.[144] The six majorkeiretsus are theMitsubishi,Sumitomo,Fuyo,Mitsui,Dai-Ichi Kangyo andSanwa.[145] Japan is home to 180 companies from theForbes Global 2000 or 9% (as of 2013).[146]
In 2012, Japan was the fifth most visited country in Asia and the Pacific, with over 8.3 million tourists.[147] In 2013, due to the weaker yen and easier visa requirements for southwest Asian countries, Japan received a record 11.25 million visitors, which was higher than the government's projected goal of 10 million visitors.[148][149][150] The government hopes to attract 40 million visitors a year by the2020 Summer Olympics in Tokyo.[149] Some of the most popular visited places include theShinjuku,Ginza,Shibuya andAsakusa areas inTokyo, and the cities ofOsaka,Kobe andKyoto, as well asHimeji Castle.[151]Hokkaido is also a popular winter destination for visitors with several ski resorts and luxury hotels being built there.[149][152]
Japan's economy is less dependent on international tourism than those of other G7 countries and OECD countries in general; from 1995 to 2014, it was by far the least visited country in theG7 despite being the second largest country in the group,[153] and as of 2013 was one of the least visited countries in theOECD on a per capita basis.[154] In 2013, international tourist receipts was 0.3% of Japan's GDP, while the corresponding figure was 1.3% for the United States and 2.3% for France.[155][156]
In 2018, Japan ranked 5th overall in the World Bank'sLogistics Performance Index,[157] and 2nd in the infrastructure category.[158]
In 2005, one half of Japan's energy was produced from petroleum, a fifth from coal, and 14% from natural gas.[159]Nuclear power in Japan made a quarter of electricity production but due to theFukushima Daiichi nuclear disaster there has been a large desire to end Japan's nuclear power program.[160][161] In September 2013, Japan closed its last 50 nuclear power plants nationwide, causing the nation to be nuclear free.[162] The country has since then opted to restart a few of its nuclear reactors.[163]
Japan's spendings on roads has been considered large.[164] The 1.2 million kilometers of paved road are one of the major means of transportation.[165] Japan hasleft-hand traffic.[166] A single network of speed, divided, limited-access toll roads connects major cities and are operated bytoll-collecting enterprises.[167] New and used cars are inexpensive, and the Japanese government has encouraged people to buyhybrid vehicles.[168] Car ownership fees and fuel levies are used to promote energy-efficiency.[168]
Rail transport is a major means of transport in Japan.Dozens of Japanese railway companies compete in regional and local passenger transportation markets; for instance, 6 passengerJR enterprises,Kintetsu Railway,Seibu Railway, andKeio Corporation.[169] Often, strategies of these enterprises containreal estate ordepartment stores next to stations, and many major stations have major department stores near them.[170] The Japanese cities ofFukuoka,Kobe,Kyoto,Nagoya,Osaka,Sapporo,Sendai,Tokyo andYokohama all havesubway systems. Some 250 high-speedShinkansen trains connect major cities.[171] All trains are known for punctuality, and a delay of 90 seconds can be considered late for some train services.[172]
There are 98 passenger and 175 totalairports in Japan, and flying is a popular way to travel.[173][174] The largest domestic airport,Tokyo International Airport, isAsia's second busiest airport.[175] The largest international gateways areNarita International Airport (Tokyo area),Kansai International Airport (Osaka/Kobe/Kyoto area), andChūbu Centrair International Airport (Nagoya area).[176] The largest ports in Japan includeNagoya Port, thePort of Yokohama, thePort of Tokyo and thePort of Kobe.[177]
About 84% of Japan's energy is imported from other countries.[178][179] Japan is the world's largest liquefied natural gas importer, second largest coal importer, and third largest net oil importer.[180] Given its heavy dependence on imported energy, Japan has aimed to diversify its sources.[181] Since the oil shocks of the 1970s, Japan has reduced dependence on petroleum as a source of energy from 77.4% in 1973 to about 43.7% in 2010 and increased dependence on natural gas and nuclear power.[182] In September 2019, Japan will invest 10 billion on liquefied natural gas projects worldwide, in a strategy to boost the global LNG market and reinforce the security of energy supply.[183] Other important energy source includes coal, andhydroelectricity is Japan's biggest renewable energy source.[184][185] Japan's solar market is also currently booming.[186] Kerosene is also used extensively for home heating in portable heaters, especially farther north.[187] Many taxi companies run their fleets on liquefied natural gas.[188] A recent success towards greaterfuel economy was the introduction of mass-producedhybrid vehicles.[168] Prime MinisterShinzō Abe, who was working on Japan's economic revival, signed a treaty withSaudi Arabia andUAE about the rising prices of oil, ensuring Japan's stable deliveries from that region.[189][190]
TheTokyo Stock Exchange is thethird largest stock exchange in the world bymarket capitalisation, as well as the 2nd largest stock market in Asia, with 2,292 listed companies.[191][192][193] TheNikkei 225 and theTOPIX are the two importantstock market indexes of the Tokyo Stock Exchange.[194][195] The Tokyo Stock Exchange and theOsaka Stock Exchange, another major stock exchange in Japan, merged on 1 January 2013, creating one of the world's largest stock exchanges.[193] Other stock exchanges in Japan include theNagoya Stock Exchange,Fukuoka Stock Exchange andSapporo Securities Exchange.[196][197]
The unemployment rate in December 2013 was 3.7%, down 1.5 percentage points from the claimed unemployment rate of 5.2% in June 2009 due to the strong economic recovery.[199][200][201]
In 2008 Japan's labor force consisted of some 66 million workers—40% of whom were women—and was rapidly shrinking.[202]One major long-term concern for the Japanese labor force is its low birthrate.[203] In 2005, the number of deaths in Japan exceeded the number of births, indicating that the decline in population had already started.[204] While one countermeasure for a declining birthrate would be to increaseimmigration, Japan has struggled to attract potential migrants despite immigration laws being relatively lenient (especially for high-skilled workers) compared to other developed countries.[205] This is also apparent when looking at Japan's work visa programme for "specified skilled worker", which had less than 3,000 applicants, despite an annual goal of attracting 40,000 overseas workers, suggesting Japan faces major challenges in attracting migrants compared to other developed countries regardless of its immigration policies.[206] A Gallup poll found that few potential migrants wished to migrate to Japan compared to other G7 countries, consistent with the country's low migrant inflow.[207][208]
In 1989, the predominantly public sector union confederation, SOHYO (General Council of Trade Unions of Japan), merged with RENGO (Japanese Private Sector Trade Union Confederation) to form theJapanese Trade Union Confederation. Labor union membership is about 12 million.
As of 2019 Japan's unemployment rate was the lowest in the G7.[209] Its employment rate for the working-age population (15–64) was the highest in the G7.[210]
Japan ranks 27th of 185 countries in theease of doing business index 2013.[211]
Japan hasone of the smallest tax rates in the developed world.[212] After deductions, the majority of workers are free frompersonal income taxes.Consumption tax rate is 10%, whilecorporate tax rates are high, second highest corporate tax rate in the world, at 36.8%.[212][213][214] However, theHouse of Representatives has passed a bill which increased the consumption tax to 10% in October 2015.[215] The government has also decided to reduce corporate tax and to phase out automobile tax.[216][217]
In 2016, theIMF encouraged Japan to adopt an income policy that pushes firms to raise employee wages in combination with reforms to tackle the labor market dual tiered employment system to drive higher wages, on top of monetary and fiscal stimulus. Shinzo Abe has encouraged firms to raise wages by at least three per cent annually (the inflation target plus average productivity growth).[218][219][220]
Shareholder activism is rare despite the fact that the corporate law gives shareholders strong powers over managers.[221] Under Prime MinisterShinzō Abe, corporate governance reform has been a key initiative to encourage economic growth. In 2012, only around 40% of leading Japanese companies had any independent directors; by 2016, the majority had begun to appoint independent directors.[218][222]
The government's liabilities includethe second largest public debt of any nation with debt of over one quadrillion yen, or 8,535,340,000,000 in USD.[223][224][225] Former Prime MinisterNaoto Kan has called the situation 'urgent'.[226]
Japan's central bank hasthe second largest foreign-exchange reserves after China, with over one trillion US Dollars in foreign reserves.[227]
Our expansion could be much bigger and quicker, but we are held back. Nowhere in the world do the [regulatory approvals] take so long. (The process is) old fashioned. —Tony Fernandes, AirAsia chief.[228]
Nemawashi (根回し), 'consensus building', in Japanese culture is an informal process of quietly betting the foundation for some proposed change or project, by talking to the people concerned, gathering support and feedback, and so forth. It is considered an important element in any major change, before any formal steps are taken, and successfulnemawashi enables changes to be carried out with the consent of all sides.
Japanese companies are known for management methods such as "The Toyota Way".Kaizen (改善, Japanese for 'improvement') is a Japanese philosophy that focuses on continuous improvement throughout all aspects of life. When applied to the workplace,kaizen activities continually improve all functions of a business, from manufacturing to management and from the CEO to the assembly line workers.[229] By improving standardised activities and processes, Kaizen aims to eliminate waste (seeLean manufacturing).Kaizen was first implemented in several Japanese businesses during the country's recovery after World War II, including Toyota, and has since spread to businesses throughout the world.[230] The corporate application of thekaizen system has been criticised for neglecting or harming the quality of life of workers, particularly via the implementation of long working hours. However, according to the OECD, Japan's average for annual hours worked per employee is lower than the OECD average and middling among G7 countries.[231]
Some companies have powerful enterprise unions andshuntō. Thenenko system ornenko joretsu as it is called in Japan, is the Japanese system of preferring to promote employees close toretirement. This is done to prioritise experience in executive positions and to allow older employees to achieve a higher salary level before retirement. Thenenko system has been criticised for leaving younger employees at a disadvantage against older employees who may be less capable.
Relationships between government bureaucrats and companies are often close.Amakudari (天下り,amakudari; 'descent from heaven') is the institutionalised practice where Japanese senior bureaucrats retire to high-profile positions in the private and public sectors. The practice is increasingly viewed as corrupt and a limitation on efforts to reduce ties between the private sector and the state that prevent economic and political reforms.Lifetime employment (shūshin koyō) and seniority-based career advancement have been common in theJapanese work environment.[212][232] These practices have become less common in recent years.[233]
Salaryman (サラリーマン,Sararīman; salaried man) refers to someone whose income issalary-based; particularly those working for corporations.Coined in Japan, the word's frequent use by Japanese corporations and its prevalence in Japanesemanga andanime has led to its adoption into and common usage within the English language to refer to Japanesewhite-collar workers, and it can be found in many English-language books and articles pertaining to Japanese culture. Immediately following World War II, becoming a salaryman was viewed as a gateway to a stable, middle-class lifestyle. In modern use, the term carries associations of long working hours, low prestige in the corporate hierarchy, absence of significant sources of income other than salary,wage slavery, andkarōshi. The termsalaryman refers almost exclusively to males.[citation needed]
Anoffice lady, often abbreviated OL (Japanese:オーエルŌeru), is a femaleoffice worker in Japan who performs generallypink collar tasks such as serving tea and doingsecretarial orclerical work. Like many unmarried Japanese, OLs oftenlive with their parents well intoearly adulthood. Office ladies are usuallyfull-time permanent staff, with little opportunity forpromotion, and there is often a tacit expectation that they leave their jobs if they get married.[citation needed]
Freeter (フリーター,furītā) is a Japanese expression for people between the age of 15 and 34 who lack full-time employment or are unemployed, excluding homemakers and students.[234] They may also be described asunderemployed orfreelance workers. These people do not start acareer afterhigh school oruniversity but instead usually live asparasite singles with their parents and earn some money with low skilled and low paid jobs. Low income makes it difficult for freeters to start a family, and lacking qualifications in the form of skilled labor experience makes it difficult for them to start a career at a later point in life.[citation needed]
Karōshi (過労死,karōshi), which can be translated quite literally from Japanese as "death from overwork", is occupational sudden death. The major medical causes of karōshi deaths are heart attack and stroke due to stress.[235]
Sōkaiya (総会屋,sōkaiya), (sometimes also translated as 'corporate bouncers', 'meeting-men', or 'corporate blackmailers') are a form of specialisedracketeer unique to Japan, and often associated with theyakuza, who extort money from or blackmail companies by threatening to publiclyhumiliate companies and their management, usually in their annual meeting (総会,sōkai).Sarakin (サラ金) is a Japanese term for 'moneylender' or 'loan shark'. It is a contraction of the Japanese words for 'salaryman' and 'cash'. Around 14 million people, or 10% of the Japanese population, have borrowed from asarakin. In total, there are about 10,000 firms (down from 30,000 a decade ago); however, the top seven firms make up 70% of the market. The value of outstanding loans totals 100 billion. The biggestsarakin are publicly traded and often allied withbig banks.[236]
The first "Western-style"department store in Japan (calledデパート,depāto) wasMitsukoshi, founded in 1904, which has its root as akimono store called Echigoya from 1673. When the roots are considered, however,Matsuzakaya has an even longer history, dating back to 1611 and becoming a department store in 1910. In 1924, Matsuzakaya store inGinza allowed street shoes to be worn indoors, something innovative at the time.[237] These former kimono shop department stores dominated the market in its earlier history. They sold luxurious products which contributed to them having sophisticated atmospheres. From the 1920s,private railway operators started to build department stores directly linked to their lines'terminuses.Seibu andHankyu are examples of this practice. From the 1980s onwards, Japanese department stores have faced fierce competition from supermarkets and convenience stores, and they have gradually declined in prominence. Still,depāto are seen as bastions of cultural conservatism in the country. Gift certificates for department stores are frequently given as presents in Japan. Department stores in Japan generally offer a wide range of services which can includeforeign exchange, travel reservations, and ticket sales for local concerts and other events.[citation needed]
Akeiretsu (系列; 'system' or 'series') is a set of companies with interlocking business relationships and shareholdings. It is a type ofbusiness group. The prototypicalkeiretsu appeared in Japan during the "economic miracle" following World War II. Before Japan's surrender, Japanese industry was controlled by large family-controlledvertical monopolies calledzaibatsu. TheAllies dismantled thezaibatsu in the late 1940s, but the companies formed from the dismantling of thezaibatsu were reintegrated. The dispersed corporations were re-interlinked through share purchases to form horizontally integrated alliances across many industries. Where possible,keiretsu companies would also supply one another, making the alliances vertically integrated as well. In this period, official government policy promoted the creation of robust trade corporations that could withstand pressures from intensified world trade competition.[238]
The majorkeiretsu were each centered on one bank, which lent money to thekeiretsu's member companies and held equity positions in the companies. Each central bank had great control over the companies in thekeiretsu and acted as a monitoring entity and as an emergency bail-out entity. One effect of this structure was to minimise the presence ofhostile takeovers in Japan, because no entities could challenge the power of the banks.[239]
There are two types ofkeiretsu: vertical and horizontal. Verticalkeiretsu illustrates the organisation and relationships within a company (for example all factors of production of a certain product are connected), while a horizontalkeiretsu shows relationships between entities and industries, normally centered on a bank and trading company. Both are complexly woven together and sustain each other.[240]
The Japanese recession in the 1990s had profound effects on thekeiretsu. Many of the largest banks were hit hard by bad loan portfolios and forced to merge or go out of business. This had the effect of blurring the lines between thekeiretsu:Sumitomo Bank andMitsui Bank, for instance, becameSumitomo Mitsui Banking Corporation in 2001, whileSanwa Bank (the banker for the Hankyu-Toho Group) became part of Bank of Tokyo-Mitsubishi UFJ, now known asMUFG Bank. Additionally, many companies from outside the keiretsu system, such asSony, began outperforming their counterparts within the system.[citation needed]
Generally, these causes gave rise to a strong notion in the business community that the oldkeiretsu system was not an effective business model, and led to an overall loosening ofkeiretsu alliances. While thekeiretsu still exist, they are not as centralised or integrated as they were before the 1990s. This, in turn, has led to a growingcorporate acquisition industry in Japan, as companies are no longer able to be easily "bailed out" by their banks, as well as risingderivative litigation by more independent shareholders.[citation needed]
 | This article needs to beupdated. The reason given is:the indicators are 10 years old and unsupported by citation as well. Please help update this to reflect recent events or newly available information.(February 2019) |
Net international investment position: 266,223 / billion[242] (1st)[243]
Industrial production growth rate: 7.5% (2010 est.)
Investment (gross fixed): 20.3% of GDP (2010 est.)
Household income or consumption by percentage share:
Agriculture products: rice, sugar beets, vegetables, fruit, pork, poultry, dairy products, eggs, fish
Export commodities: machinery and equipment, motor vehicles, semiconductors, chemicals[244]
Import commodities: machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials (2001)
Exchange rates:
Japanese Yen per US$1 – 88.67 (2010), 93.57 (2009), 103.58 (2008), 117.99 (2007), 116.18 (2006), 109.69 (2005), 115.93 (2003), 125.39 (2002), 121.53 (2001), 105.16 (January 2000), 113.91 (1999), 130.91 (1998), 120.99 (1997), 108.78 (1996), 94.06 (1995)
Electricity:
Electricity production by source:
Electricity standards:
Oil:
National debt from 2017 to 2027
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