Japan Economy

Submitted to :

MRS.SEEMA MEHTA
 Introduction
 Emperor: Akihito (1989)

 Prime Minister: Yukio Hatoyama (2009)

 Land area: 152,411 sq mi (394,744 sq

km); total area: 145,882 sq mi (377,835 sq
km)

 Population (2009 est.): 127,078,679

(growth rate: -0.1%); birth rate:
7.6/1000; infant mortality rate: 2.8/1000;
life expectancy: 82.1; density per sq km:
339

 Capital and Largest city : Tokyo,

35,327,000 (metro. area), 8,483,050 (city
proper)

 Literacy rate: 99% (2002 est.)

 Other large cities: Yokohama, 3,494,900
(part of Tokyo metro. area); Osaka,
11,286,000 (metro. area), 2,597,000 (city
proper); Nagoya, 2,189,700; Sapporo,
1,848,000; Kobe, 1,529,900 (part of Osaka
metro. area); Kyoto, 1,470,600 (part of
Osaka metro. area); Fukuoka, 1,368,900;
Kawasaki, 1,276,200 (part of Tokyo
metro. area); Hiroshima, 1,132,700
Japan GDP Growth Rate

Japan is the third largest economy in the

world ($4.3 trillion) after the United States
and China measured on a purchasing power
parity basis. In 2007, the country accounted
for 6.6% of the gross world product. The
nation has one of the highest GDP per capita,
almost $34,0, according to the International
Monetary Fund.

From year 2008 till the second quarter of

2009, Japan recorded negative growth.
 Japan Economy
 Japan’s economy, the world’s second
largest, is deteriorating at its worst pace
since the oil crisis of the 1970s, hurt by
shrinking exports and anemic spending at
home.

 The country’s real gross domestic

product shrank at an annual rate of 12.7
percent from October to December after
contracting for two previous quarters, the
government said Monday. When
compared with the third quarter of 2008,
Japan’s economy receded 3.3 percent

 The Japanese economy is one of the

strongest in the world. Only the USA has
a higher GNP. The Japanese currency is
the Yen.

 Exports: Japan's main export goods are

cars, electronic devices and computers.
Most important single trade partner is the
 USA which imports more than one
quarter of all Japanese exports. Other
major export countries are Taiwan, Hong
Kong, South Korea, China and
Singapore.

 Imports: Japan has a large surplus in its

export/import balance. The most
important import goods are raw
materials such as oil, foodstuffs, and
wood. Major suppliers are the USA,
China, Indonesia, South Korea, and
Australia.

 Industries: Manufacturing, construction,

distribution, real estate, services, and
communication are Japan's major
industries today. Agriculture makes up
only about 2% of the GNP. Most
important agricultural product is rice.
Resources of raw materials are very
limited and the mining industry rather
small.
Economic Recovery :
Followed by Deep Recession
 Japan's postwar economic recovery was
nothing short of remarkable. New
technologies and manufacturing were
undertaken with great success. A shrewd
trade policy gave Japan larger shares in
many Western markets, an imbalance
that caused some tensions with the U.S.
The close involvement of Japanese
government in the country's banking and
industry produced accusations of
protectionism. Yet economic growth
continued through the 1970s and 1980s,
eventually making Japan the world's
second-largest economy (after the U.S.).

 During the 1990s, Japan suffered an

economic downturn prompted by
scandals involving government officials,
bankers, and leaders of industry. Japan
succumbed to the Asian economic crisis in
1998, experiencing its worst recession
since World War II. These setbacks led to
the resignation of Prime Minister
Ryutaro Hashimoto in July 1998. He was
replaced by Keizo Obuchi. In 1999, Japan
seemed to make slight progress in an
economic recovery. Prime Minister
Obuchi died of a stroke in May 2000 and
was succeeded by Yoshiro Mori, whose
administration was dogged by scandal
and blunders from the outset.
 Economic summary
 According to the CIA World Factbook, the
estimated GDP-Purchasing power parity of
Japan in 2007 was $4.29 trillion, and the GDP
(PPP) per capita was $33,600. Japanese GDP
grew at 2.8% in 2007.
The economy is highly advanced and
dominated by the services sector, accounting
for 73.1% of the economy. The industrial
sector, once the engine of Japan's growth,
contributed 25.3% of the GDP. The
agricultural sector accounts for only 1.6% of
the economy.
 GDP/PPP (2007 est.): $4.29 trillion; per capita
$33,600.
 Real growth rate: 2.1%. Inflation: 0%.
Unemployment: 4%. Arable land: 12%.
Agriculture: rice, sugar beets, vegetables,
fruit; pork, poultry, dairy products, eggs; fish.
Labor force: 66.07 million; agriculture 4.6%,
industry 27.8%, services 67.7% (2004).
Industries: among world's largest and
technologically advanced producers of motor
vehicles, electronic equipment, machine tools,
 steel and nonferrous metals, ships, chemicals,
textiles, processed foods.
 Natural resources: Negligible mineral
resources, fish.
 Exports: $665.7 billion f.o.b. (2007 est.):
transport equipment, motor vehicles,
semiconductors, electrical machinery,
chemicals. Imports: $571.1billion f.o.b. (2007
est.): machinery and equipment, fuels,
foodstuffs, chemicals, textiles, raw materials.
 Major trading partners: U.S., China, South
Korea, Taiwan, Hong Kong, Indonesia,
Australia, Saudi Arabia, UAE (2006).
 Although exports (still around two thirds of
last year levels) declined at the slowest pace in
the second quarter, it was mostly due to
global stimulus measures and renewed
inventory buildup. Looking forward, at
Trading Economics we expect Japanese
economic growth to stay below trend with
sluggish spending around the world expected
to continue and stimulus packages sooner or
later drying up.