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Economy of Japan
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{{Short description|none}} {{Use British English|date=September 2019}} {{Use dmy dates|cs1-dates=ll|date=March 2025}} {{Infobox economy | country = Japan | image = Tokyo Marunouchi in autumn.jpg | image_size = 310px | caption = [[Marunouchi]] in [[Tokyo]], the [[financial centre]] of Japan | currency = [[Japanese yen]] (JPY, ¥) | year = 1 April – 31 March | organs = [[Asia-Pacific Economic Cooperation|APEC]], [[World Trade Organization|WTO]], [[Comprehensive and Progressive Agreement for Trans-Pacific Partnership|CPTPP]], [[Regional Comprehensive Economic Partnership|RCEP]], [[OECD]], [[G-20 major economies|G-20]], [[Group of Seven|G7]] and others | group = {{plainlist| *[[Developed country|Advanced economy]]<ref>{{cite web |url= https://www.imf.org/en/Publications/WEO/weo-database/2024/April/groups-and-aggregates |title=World Economic Outlook Database, April 2024 |publisher=[[International Monetary Fund]] |work=IMF.org |access-date=29 April 2024 |archive-date=17 April 2024 |archive-url= https://web.archive.org/web/20240417191032/https://www.imf.org/en/Publications/WEO/weo-database/2024/April/groups-and-aggregates |url-status=live}}</ref> *[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url= https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |work=datahelpdesk.worldbank.org |access-date=29 September 2019 |archive-date=28 October 2019 |archive-url= https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=live}}</ref> * [[Welfare state]]<ref name="Japan_welfare" /><ref name="Kenworthy" />}} | population = {{Decrease}} 123,262,483 (2025) | gdp = {{plainlist| * {{increase}} $4.19 trillion ([[GDP (nominal)|nominal]]; {{abbr|2025f|2025 forecast}})<ref name="IMF DataMapper">{{cite web |url=https://www.imf.org/external/datamapper/profile/JPN |title=IMF DataMapper: Japan |website=[[International Monetary Fund]] |date=22 October 2024 |access-date=11 November 2024}}</ref> * {{increase}} $6.740 trillion ([[Purchasing power parity|PPP]]; {{abbr|2025f|2025 forecast}})<ref name="IMF DataMapper"/> }} | gdp rank = {{plainlist| * [[List of countries by GDP (nominal)|5th (nominal; {{abbr|2025f|2025 forecast}})]] * [[List of countries by GDP (PPP)|5th (PPP; {{abbr|2025f|2025 forecast}})]] }} | growth = {{plainlist| * {{Increase}} 1.5% (2023)<ref name="IMF DataMapper" /> * {{Increase}} 0.8% (2024)<ref name="IMF DataMapper" /> * {{Increase}} 0.6% ({{abbr|2025f|2025 forecast}})<ref name="IMF DataMapper" /> }} | per capita = {{plainlist| * {{increase}} $33,956 (nominal; {{abbr|2025f|2025 forecast}})<ref name="IMF DataMapper"/> * {{increase}} $54,678 (PPP; {{abbr|2025f|2025 forecast}})<ref name="IMF DataMapper"/> }} | per capita rank = {{plainlist| *[[List of countries by GDP (nominal) per capita|34th (nominal; 2025)]] *[[List of countries by GDP (PPP) per capita|38st (PPP; 2025)]] }} | sectors = {{plainlist| *[[Primary sector of the economy|Agriculture]]: 1.0% *[[Secondary sector of the economy|Industry]]: 26.9% *[[Tertiary sector of the economy|Services]]: 71.4% *(2022 est.)<ref name="CIAWFJA">{{cite web |url= https://www.cia.gov/the-world-factbook/countries/japan/ |title=East Asia/Southeast Asia: Japan |publisher=[[Central Intelligence Agency]] |work=CIA.gov |access-date=21 October 2024 |archive-date=5 January 2021 |archive-url= https://web.archive.org/web/20210105105736/https://www.cia.gov/the-world-factbook/countries/japan/ |url-status=live}}</ref> }} | components = {{plainlist| * Household consumption: 55.6% * Government consumption: 21.6% * Investment in fixed capital: 26.0% * Investment in inventories: 0.6% * Exports of goods and services: 21.5% * Imports of goods and services: −25.3% * (2022 est.)<ref name="CIAWFJA" /> }} | inflation = 3.1% | poverty = 16.1% (2013)<ref name="CIAWFJA" /> | gini = 33.8 {{color|darkorange|medium}} (2021)<ref>{{cite web |title=Income Distribution Database |url= https://data-explorer.oecd.org/vis?lc=en&pg=0&tm=income%20inequality&snb=59&vw=tb&df[ds]=dsDisseminateFinalDMZ&df[id]=DSD_WISE_IDD%40DF_IDD&df[ag]=OECD.WISE.INE&df[vs]=1.0&dq=.A.INC_DISP_GINI..._T.METH2012.D_CUR.&pd=2010%2C&to[TIME_PERIOD]=false |work=data.oecd.org |publisher=OECD |access-date=27 November 2024 |archive-date=2 February 2020 |archive-url= https://web.archive.org/web/20200202080438/https://data.oecd.org/chart/5PyK |url-status=live}}</ref> | cpi = {{decrease}} 73 out of 100 points (2023)<ref name="ti_2023">{{cite web |url= https://www.transparency.org/en/cpi/2023 |title=CPI 2023 |date=30 January 2024 |publisher=[[Transparency International]] |access-date=30 January 2024 |archive-date=4 February 2023 |archive-url= https://web.archive.org/web/20230204001659/https://www.transparency.org/en/cpi/2023 |url-status=live}}</ref> ([[Corruption Perceptions Index#Ranking over Time|rank 16th]]) | hdi = {{plainlist| *{{steady}} 0.920 {{color|darkgreen|very high}} (2022)<ref name="hdi">{{cite web |url= https://hdr.undp.org/data-center/specific-country-data#/countries/JPN |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |work=hdr.undp.org}}</ref> ([[List of countries by Human Development Index|24th]]) *{{increase}} 0.844 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI (19th)]] (2022)<ref name="hdi" />}} | labor = {{plainlist| *{{decrease}} 69.349 million (2023 est.)<ref name="STATJP">{{cite web |url= http://www.stat.go.jp/english/data/roudou/results/month/zuhyou/15423.xlsx |title=Seasonally adjusted series of major items (labour force, employed person, unemployed person, not in labour force, unemployment rate) |publisher=[[Ministry of Internal Affairs and Communications]] |work=stat.go.jp |access-date=2 October 2020 |archive-date=7 August 2020 |archive-url= https://web.archive.org/web/20200807193002/http://www.stat.go.jp/english/data/roudou/results/month/zuhyou/15423.xlsx |url-status=live}}</ref> *{{increase}} 61.2% employment rate (May 2023)<ref>{{cite web |url= http://www.stat.go.jp/english/data/roudou/results/month/zuhyou/15416.xlsx |title=Employed person by age group |publisher=[[Ministry of Internal Affairs and Communications]] |work=stat.go.jp |access-date=2 October 2020 |archive-date=7 August 2020 |archive-url= https://web.archive.org/web/20200807192902/http://www.stat.go.jp/english/data/roudou/results/month/zuhyou/15416.xlsx |url-status=live}}</ref>}} | occupations = {{plainlist| *[[Primary sector of the economy|Agriculture]]: 3% *[[Secondary sector of the economy|Industry]]: 24% *[[Tertiary sector of the economy|Services]]: 73% *(2023)<ref>{{cite web |title=Labor force by services |url= https://data.worldbank.org/indicator/SL.SRV.EMPL.ZS?locations=JP |work=Data.WorldBank.org |access-date=27 January 2019 |quote= |archive-date=27 June 2022 |archive-url= https://web.archive.org/web/20220627150250/https://data.worldbank.org/indicator/SL.SRV.EMPL.ZS?locations=JP |url-status=live}} – Labor Force by [https://data.worldbank.org/indicator/SL.IND.EMPL.ZS?locations=JP Industry] {{Webarchive |url= https://web.archive.org/web/20220627142304/https://data.worldbank.org/indicator/SL.IND.EMPL.ZS?locations=JP |date=27 June 2022}} and [https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=JP agriculture] {{Webarchive |url= https://web.archive.org/web/20220627141940/https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=JP |date=27 June 2022}}</ref>}} | unemployment = {{plainlist| *{{decreasePositive}} 2.6% (2023)<ref name="STATJP" /> *{{decreasePositive}} 3.7% youth unemployment (15 to 24 year-olds; May 2023)<ref name="STATJP" /> *{{decreasePositive}} 1.8 million unemployed (May 2023)<ref name="STATJP" />}} | average gross salary = [[List of Asian countries by average wage|¥452,247]] / US$3,106 monthly<ref>[https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/04/taxing-wages-2025_20d1a01d/b3a95829-en.pdf#page176 Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | READ online.]</ref><ref>[https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | OECD iLibrary.]</ref> (2024) | average net salary = [[List of Asian countries by average wage|¥352,541]] / US$2,421 monthly<ref>[https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/04/taxing-wages-2025_20d1a01d/b3a95829-en.pdf#page176 Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | READ online.]</ref><ref>[https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | OECD iLibrary.]</ref> (2024) | industries = {{plainlist| * [[High technology]] * [[Motor vehicles]] * [[Electronics]] * [[Machine tools]]|[[steel]] * [[Nonferrous metals]]|[[ships]] * [[Chemicals]] * [[Textiles]] * [[Processed foods]] }} | exports = {{Increase}} $691 billion (2024)<ref name="Japan exports, imports">{{cite web |author=<!--Staff writer(s); no by-line.--> |title=Japan exports hit record high, but trade deficit continues |date=23 January 2025 |work=[[Asashi Shimbun]] |agency=[[Associated Press]] |url= https://www.asahi.com/sp/ajw/articles/15596481}}</ref> | export-goods = {{plainlist| *[[Vehicle|Transport Equipment]] 21.0% *[[Machine]]ry 19.9% *[[Electric machine|Electrical Machinery]] 18.7% *[[Chemical substance|Chemicals]] 12.4% *[[Manufacturing|Manufactured Goods]] 10.4% *[[Raw material|Raw Materials]] 1.7% *[[Food]]stuff 1.3% *[[fossil fuel|Mineral Fuels]] 0.8% *Others: 13.8%<ref name="Japan exports, imports" />}} | export-partners = {{Tree list}} *{{nowrap|{{flag|China}} 22.2%}} **{{flag|Hong Kong}} 4.9% *{{flag|United States}} 20.6% *{{flag|ASEAN}} 13.9% *{{flag|European Union}} 9.7% *{{flag|Taiwan}} 6.6% *{{flag|South Korea}} 6.6% *(2024)<ref name="Japan exports, imports" /> {{Tree list/end}} | imports = {{increase}} $721.1 billion USD (2024)<ref>{{cite web |author=<!--Staff writer(s); no by-line.--> |title=Japan's trade deficit shrinks 44% in 2024 on record exports |work=[[Kyodo News]] |date=23 January 2025 |url= https://english.kyodonews.net/news/2025/01/db2a513c4533-update1-japans-trade-deficit-shrinks-44-in-2024-on-record-exports.html}}</ref> | import-goods = {{plainlist| *[[Electric machine|Electrical Machinery]] 17.6% *[[fossil fuel|Mineral Fuels]] 16.6% *[[Machine]]ry 10.5% *[[Food]]stuff 9.9% *[[Chemical substance|Chemicals]] 9.9% *[[Manufacturing|Manufactured Goods]] 9.3% *[[Raw material|Raw Materials]] 6.9% *[[Vehicle|Transport Equipment]] 5.0% *Others: 14.4%<ref name="Japan exports, imports" />}} | import-partners = {{Tree list}} *{{nowrap|{{flag|China}} 22.3%}} **{{flag|Hong Kong}} 0.4% *{{flag|ASEAN}} 15.3% *{{flag|United States}} 10.5% *{{flag|European Union}} 10.4% *{{flag|Australia}} 7.1% *{{flag|United Arab Emirates}} 5.4% *(2024)<ref name="Japan exports, imports" /> {{Tree list/end}} | current account = {{Decrease}} $58.108 billion (2022)<ref name="IMF_Finance" /> | FDI = {{plainlist| * {{decrease}} Inward: $25 billion (2021)<ref name="UNFDI">{{cite web |title=UNCTAD 2022 |url= https://unctad.org/system/files/official-document/tdstat47_en.pdf |access-date=6 January 2022 |work=UNCTAD |archive-date=12 December 2022 |archive-url= https://web.archive.org/web/20221212074134/https://unctad.org/system/files/official-document/tdstat47_en.pdf |url-status=live}}</ref> * {{increase}} Outward: $147 billion (2021)<ref name="UNFDI" /> }} | gross external debt = {{increaseNegative}} $4.54 trillion (March 2023)<ref name="Ceicdata.com">{{cite web |title=External Debt {{!}} Economic Indicators |url= https://www.ceicdata.com/en/indicator/external-debt |work=CEICData.com |access-date=21 January 2023 |archive-date=10 February 2023 |archive-url= https://web.archive.org/web/20230210073319/https://www.ceicdata.com/en/indicator/external-debt |url-status=live}}</ref><br />(103.2% of GDP) | debt = {{plainlist| * {{increaseNegative}} ¥1.457 quadrillion * {{increaseNegative}} 263.9% of GDP (2022)<ref name="IMF_Finance">{{cite web |url= https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=158,&s=NID_NGDP,NGSD_NGDP,PCPIPCH,LUR,GGR,GGR_NGDP,GGX,GGX_NGDP,GGXWDG,GGXWDG_NGDP,BCA,BCA_NGDPD,&sy=2022&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: October 2022 |publisher=[[International Monetary Fund]] |work=IMF.org |access-date=21 January 2023 |archive-date=21 January 2023 |archive-url= https://web.archive.org/web/20230121150514/https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=158,&s=NID_NGDP,NGSD_NGDP,PCPIPCH,LUR,GGR,GGR_NGDP,GGX,GGX_NGDP,GGXWDG,GGXWDG_NGDP,BCA,BCA_NGDPD,&sy=2022&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |url-status=live}}</ref> }} | revenue = ¥196,214 billion<ref name="IMF_Finance" /><br />35.5% of GDP (2022)<ref name="IMF_Finance" /> | expenses = ¥239,694 billion<ref name="IMF_Finance" /><br />43.4% of GDP (2022)<ref name="IMF_Finance" /> | balance = 1.35% of GDP (2022 est.)<ref name="IMF_Finance" /> | reserves = {{Decrease}} US$1.255 trillion (September 2024)<ref>{{cite web |title=International Reserves / Foreign Currency Liquidity |url= https://www.mof.go.jp/english/policy/international_policy/reference/official_reserve_assets/e0609.html |access-date=23 October 2024 |publisher=[[Ministry of Finance (Japan)]] |archive-date=19 April 2021 |archive-url= https://web.archive.org/web/20210419004848/https://www.mof.go.jp/english/international_policy/reference/official_reserve_assets/index.htm |url-status=live}}</ref> | credit = {{plainlist| *[[Standard & Poor's]]:<ref name="Sovereigns rating list">{{cite web |url= http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |title=Sovereigns rating list |publisher=Standard & Poor's |access-date=26 May 2011 |archive-date=28 September 2011 |archive-url= https://web.archive.org/web/20110928234500/http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |url-status=live}}</ref><ref name="guardian">{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |url= https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |location=London |access-date=31 May 2011 |archive-date=1 August 2013 |archive-url= https://web.archive.org/web/20130801105234/http://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |url-status=live}}</ref> *A+ (Domestic) *A+ (Foreign) *AA+ (T&C Assessment) *Outlook: Stable ---- *[[Moody's]]:<ref name="guardian" /> *A1 *Outlook: Stable ---- *[[Fitch Group|Fitch]]:<ref name="guardian" /> *A *Outlook: Stable}} | aid = ''donor'': [[Official development assistance|ODA]], $10.37 billion (2016)<ref name="oecd-aid">{{cite web |title=Development aid rises again in 2016 but flows to poorest countries dip |url= http://www.oecd.org/dac/development-aid-rises-again-in-2016-but-flows-to-poorest-countries-dip.htm |work=[[OECD]] |date=11 April 2017 |access-date=25 September 2017 |archive-date=18 September 2017 |archive-url= https://web.archive.org/web/20170918230929/http://www.oecd.org/dac/development-aid-rises-again-in-2016-but-flows-to-poorest-countries-dip.htm |url-status=live}}</ref> | cianame = japan | spelling = GB }} The '''economy of Japan''' is a [[Developed country|highly developed]] [[mixed economy]], often referred to as an [[East Asian model]].<ref>{{cite book |last=Lechevalier |first=Sébastien |date=2014 |title=The Great Transformation of Japanese Capitalism |url= https://books.google.com/books?id=s3vMAgAAQBAJ&q=japan+economy+and+capitalism |publisher=[[Routledge]] |page=204 |isbn=9781317974963}}</ref> According to the [[International Monetary Fund|IMF]] forecast for 2025, it will be the fifth-largest economy in the world [[List of countries by GDP (nominal)|by nominal GDP]] as well as [[List of countries by GDP (PPP)|by purchasing power parity]] (PPP) by the end of the year.<ref>{{Cite web |title=Select Country or Country Groups |url=https://www.imf.org/en/Publications/WEO/weo-database/2025/april/select-country-group |access-date=2025-04-24 |website=IMF |language=en}}</ref> It constituted 3.7% of the world's economy on a nominal basis in 2024. According to the same forecast, the country's [[List of countries by GDP (PPP) per capita|per capita GDP]] (PPP) will be $54,678 (2025).<ref name="IMFWEOJP">{{cite web |url= https://www.imf.org/en/Publications/WEO/weo-database/2025/April/weo-report?c=111,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: October 2024 |publisher=[[International Monetary Fund]] |work=imf.org}}</ref><ref>{{cite book |title=Japan: 2017 Article IV Consultation : Press Release ; Staff Report ; and Statement by the Executive Director for Japan. |date=2017 |publisher=International Monetary Fund. Asia and Pacific Department |isbn=978-1-4843-1349-7 |location=Washington, D.C. |oclc=1009601181}}</ref> Due to a volatile currency [[exchange rate]], [[Japan]]'s nominal GDP as measured in American dollars fluctuates sharply. A founding member of the [[G7]] and an early member of the [[OECD]], Japan was the first country in Asia to achieve [[developed country]] status. In 2018, Japan was the fourth-largest in the world both [[List of countries by imports|as an importer]] and [[List of countries by exports|as an exporter]].<ref>{{cite web |title=World Trade Statistical Review 2019 |url= https://www.wto.org/english/res_e/statis_e/wts2019_e/wts2019_e.pdf |access-date=31 May 2019 |work=[[World Trade Organization]] |page=100 |archive-date=30 June 2022 |archive-url= https://web.archive.org/web/20220630220225/https://www.wto.org/english/res_e/statis_e/wts2019_e/wts2019_e.pdf |url-status=live}}</ref> The country also has the world's [[List of largest consumer markets|fourth-largest consumer market]].<ref>{{Cite web |title=Household final consumption expenditure (current US$) {{!}} Data |url= https://data.worldbank.org/indicator/NE.CON.PRVT.CD?most_recent_value_desc=true&year_high_desc=true |access-date=7 April 2018 |work=data.worldbank.org |archive-date=11 November 2020 |archive-url= https://web.archive.org/web/20201111211439/https://data.worldbank.org/indicator/NE.CON.PRVT.CD?most_recent_value_desc=true |url-status=live}}</ref> Japan used to run a considerable [[Balance of trade|trade surplus]], but the decline of the manufacturing sector since the 1980s and increased fossil fuel imports after the [[Fukushima nuclear accident]] in 2011 have changed this trend in recent years.<ref>{{Cite web |title=Trade Statistics of Japan Ministry of Finance |url= https://www.customs.go.jp/toukei/info/index_e.htm |access-date=5 December 2024 |work=www.customs.go.jp}}</ref><ref>{{Cite web |date=27 October 2022 |title=国富流出「10年で約50兆円」 エネルギー輸入で大打撃 |url= https://www.nikkei.com/article/DGXZQOUC2434Z0U2A021C2000000/ |access-date=5 December 2024 |work=日本経済新聞 |language=ja}}</ref> Being the world's largest [[creditor]] nation,<ref>{{cite news |date=2 September 2018 |title=Japan, savings superpower of the world |url= https://www.japantimes.co.jp/opinion/2018/09/02/commentary/japan-commentary/japan-savings-superpower-world/ |url-status=live |archive-url= https://web.archive.org/web/20200807140043/https://www.japantimes.co.jp/opinion/2018/09/02/commentary/japan-commentary/japan-savings-superpower-world/ |archive-date=7 August 2020 |access-date=12 September 2020 |work=The Japan Times}}</ref><ref name="creditor">{{cite news |last=Chandler |first=Marc |date=19 August 2011 |title=The yen is a safe haven as Japan is the world's largest creditor |url= http://www.creditwritedowns.com/2011/08/japan-safe-haven.html |url-status=live |archive-url= https://web.archive.org/web/20160304214550/https://www.creditwritedowns.com/2011/08/japan-safe-haven.html |archive-date=4 March 2016 |access-date=19 June 2013 |work=Credit Writedowns}}</ref><ref name="creditor 22nd year">{{cite news |author=Obe, Mitsuru |date=28 May 2013 |title=Japan World's Largest Creditor Nation for 22nd Straight Year |url= https://blogs.wsj.com/japanrealtime/2013/05/28/japan-worlds-largest-creditor-nation-for-22nd-straight-year/ |url-status=live |archive-url= https://web.archive.org/web/20130618022950/http://blogs.wsj.com/japanrealtime/2013/05/28/japan-worlds-largest-creditor-nation-for-22nd-straight-year/ |archive-date=18 June 2013 |access-date=14 October 2013 |work=[[The Wall Street Journal]]}}</ref> Japan has a considerable net international investment surplus. The country has the world's [[List of countries by foreign-exchange reserves|second-largest]] foreign-exchange reserves, worth $1.4 trillion.<ref name="Japan_reserves">{{cite web |title=International Policy > Statistics > International Reserves/Foreign Currency Liquidity |url= http://www.mof.go.jp/english/international_policy/reference/official_reserve_assets/index.htm |publisher=Ministry of Finance Japan |access-date=3 September 2017 |archive-date=6 January 2013 |archive-url= https://web.archive.org/web/20130106115613/http://www.mof.go.jp/english/international_policy/reference/official_reserve_assets/index.htm |url-status=live}}</ref> Japan has the [[List of sovereign states by financial assets|third-largest financial assets in the world]], valued at $12 trillion, or 8.6% of the global GDP total as of 2020.<ref>{{Cite web |title=Allianz Global Wealth Report 2021 |url= https://www.eulerhermes.com/content/dam/onemarketing/ehndbx/eulerhermes_com/en_gl/erd/publications/pdf/2021_10_07_Global-Wealth-Report.pdf |access-date=5 March 2022 |archive-date=7 October 2021 |archive-url= https://web.archive.org/web/20211007105917/https://www.eulerhermes.com/content/dam/onemarketing/ehndbx/eulerhermes_com/en_gl/erd/publications/pdf/2021_10_07_Global-Wealth-Report.pdf |url-status=live}}</ref><ref name="fin">{{cite web |date=2015 |title=Allianz Global Wealth Report 2015 |url= https://www.allianz.com/v_1443702256000/media/economic_research/publications/specials/en/AGWR2015_ENG.pdf |url-status=dead |archive-url= https://web.archive.org/web/20170121134304/https://www.allianz.com/v_1443702256000/media/economic_research/publications/specials/en/AGWR2015_ENG.pdf |archive-date=21 January 2017 |access-date=24 March 2016 |work=[[Allianz]]}}</ref> Japan has a highly efficient and strong [[Welfare in Japan|social security system]], which comprises [[Welfare state#Effects|roughly 23.5% of GDP]].<ref name="Kenworthy">{{Cite journal |last1=Kenworthy |first1=Lane |date=1999 |title=Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment |url= http://www.lisdatacenter.org/wps/liswps/188.pdf |url-status=live |journal=Social Forces |volume=77 |issue=3 |pages=1119–1139 |doi=10.2307/3005973 |jstor=3005973 |archive-url= https://web.archive.org/web/20130810134045/http://www.lisdatacenter.org/wps/liswps/188.pdf |archive-date=10 August 2013}}</ref><ref name="Bradley et al.">{{Cite journal |last1=Moller |first1=Stephanie |last2=Huber |first2=Evelyne |last3=Stephens |first3=John D. |last4=Bradley |first4=David |last5=Nielsen |first5=François |date=2003 |title=Determinants of Relative Poverty in Advanced Capitalist Democracies |journal=American Sociological Review |volume=68 |issue=1 |pages=22–51 |doi=10.2307/3088901 |jstor=3088901}}</ref><ref name="Japan_welfare">{{Cite web |title=Social Expenditure – Aggregated data |url= http://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG |work=[[OECD]] |access-date=23 April 2024 |archive-date=19 April 2021 |archive-url= https://web.archive.org/web/20210419221301/https://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG |url-status=live}}</ref> The [[Tokyo Stock Exchange]] is the world's [[List of stock exchanges|third-largest stock exchange]] by [[market capitalisation]] as of 2024.<ref>{{cite web |title=Monthly Reports - World Federation of Exchanges |url= https://www.world-exchanges.org/our-work/statistics |publisher=WFE |access-date=7 September 2019 |archive-date=12 September 2019 |archive-url= https://web.archive.org/web/20190912130053/https://www.world-exchanges.org/our-work/statistics |url-status=live}}</ref><ref>{{cite web |title=Nikkei Indexes |url= http://indexes.nikkei.co.jp/en/nkave/newsroom |work=indexes.nikkei.co.jp |access-date=15 November 2015 |archive-date=12 September 2015 |archive-url= https://web.archive.org/web/20150912182423/http://indexes.nikkei.co.jp/en/nkave/newsroom |url-status=live}}</ref> Japan has a highly service-dominated economy, which contributes approximately 70% of GDP, with most of the remainder coming from the industrial sector.<ref>{{Cite web |title=In Fact: The service sector in Japan |url= https://www.rieti.go.jp/en/columns/a01_0364.html |access-date=31 May 2024 |work=www.rieti.go.jp |archive-date=31 May 2024 |archive-url= https://web.archive.org/web/20240531120358/https://www.rieti.go.jp/en/columns/a01_0364.html |url-status=live}}</ref> The [[Automotive industry in Japan|country's automobile industry]], which is the second largest in the world, dominates the industrial sector, with [[Toyota]] being the world’s largest manufacturer of cars.<ref name="2013 PRODUCTION STATISTICS – FIRST 6 MONTHS">{{cite web |url= http://www.oica.net/category/production-statistics/ |title=2013 Production Statistics – First 6 Months |work=[[OICA]] |access-date=16 October 2013 |archive-date=6 November 2013 |archive-url= https://web.archive.org/web/20131106174001/http://www.oica.net/category/production-statistics/ |url-status=live}}</ref> Japan is often ranked among the world’s most innovative countries, leading several measures of global patent filings. However, its manufacturing industry has lost its world dominance since the 1990s. In 2022, Japan spent around 3.7% of GDP on research and development. As of 2024, 40 of the ''[[Fortune Global 500]]'' companies are based in Japan.<ref name="Global 500 2015">{{cite web |title=Global 500 (updated) |url= http://fortune.com/global500/ |work=[[Fortune (magazine)|Fortune]] |access-date=24 March 2016 |archive-date=10 July 2016 |archive-url= https://web.archive.org/web/20160710084149/http://fortune.com/global500/ |url-status=live}}</ref> 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.<ref>Maddison 2007, p. 379, table A.4.</ref> Industrialisation in Japan began in the second half of the 19th century with the [[Meiji Restoration]], initially focusing on the [[textile industry]] and later on heavy industries. The country rapidly built [[Empire of Japan|its colonial empire]] and the [[Imperial Japanese Navy|third most powerful navy]] in the world. After the defeat in the [[World War II|Second World War]], Japan’s economy recovered and developed further rapidly, primarily propelled by its lucrative manufacturing exporting industries.<ref>{{Cite web |title=第２章 持続的発展のための条件 - 内閣府 |url= https://www5.cao.go.jp/j-j/wp/wp-je00/wp-je00-0020j.html |access-date=31 May 2024 |work=内閣府ホームページ |language=ja |archive-date=4 December 2023 |archive-url= https://web.archive.org/web/20231204004318/https://www5.cao.go.jp/j-j/wp/wp-je00/wp-je00-0020j.html |url-status=live}}</ref> It became [[List of regions by past GDP (PPP)|the second largest economy in the world]] in 1968 and remained so until 2010,<ref name=":0">{{Cite web |title=Japan's GDP falls behind Germany to fourth place amid weak yen {{!}} The Asahi Shimbun: Breaking News, Japan News and Analysis |url=https://www.asahi.com/ajw/articles/15168705 |url-status=live |archive-url=https://web.archive.org/web/20240226081214/https://www.asahi.com/ajw/articles/15168705 |archive-date=26 February 2024 |access-date=31 May 2024 |work=The Asahi Shimbun}}</ref> and on a nominal per capita basis, the most high-income among the G7 countries in the 1980s and 1990s.<ref>{{Cite web |title=World Bank Open Data |url= https://data.worldbank.org/ |access-date=31 May 2024 |archive-date=26 May 2023 |archive-url= https://web.archive.org/web/20230526025607/https://data.worldbank.org/ |url-status=live}}</ref> In 1995, Japan’s share of the world’s nominal GDP was 17.8%, reaching approximately 71% of that of the United States.<ref name=":0" /> Driven by speculative investments and excessive lending, the [[Japanese 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 the [[Lost Decades]]. From 1995 to 2023, the country’s GDP fell from $5.5 trillion to $4.2 trillion in nominal terms.<ref>{{cite web |url= https://www.google.ae/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&hl=en&dl=en#!ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_mktp_cd&scale_y=lin&ind_y=false&rdim=region&idim=country:JPN&ifdim=region&hl=en_US&dl=en&ind=false |title=Japanese GDP, nominal |access-date=8 May 2020 |archive-date=19 November 2015 |archive-url= https://web.archive.org/web/20151119231409/https://www.google.ae/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&hl=en&dl=en#!ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_mktp_cd&scale_y=lin&ind_y=false&rdim=region&idim=country:JPN&ifdim=region&hl=en_US&dl=en&ind=false |url-status=live}}</ref> At the turn of the 21st century, the [[Bank of Japan]] set out to encourage growth through a policy of [[quantitative easing]], with the central bank purchasing government bonds at an unprecedented scale to address the persisting [[Deflation|deflationary pressure]].<ref>{{Cite web |title=金融市場調節方式の変更と一段の金融緩和措置について : 日本銀行 Bank of Japan |url= https://www.boj.or.jp/mopo/mpmdeci/mpr_2001/k010319a.htm |access-date=3 January 2025 |work=日本銀行ホームページ |language=ja}}</ref><ref name="japandebt">{{cite news |url= https://www.marketwatch.com/story/heres-a-lesson-from-japan-about-the-threat-of-a-us-debt-crisis-2018-05-14/ |title=Here's a lesson from Japan about the threat of a U.S. debt crisis |first=Sunny |last=Oh |work=MarketWatch}}</ref> In 2016, the Bank of Japan introduced a [[Negative interest rate|negative 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.<ref name=":1">{{Cite web |date=20 May 2024 |title=What's Up with Inflation Expectations in Japan? - San Francisco Fed |url= https://www.frbsf.org/research-and-insights/publications/economic-letter/2024/05/whats-up-with-inflation-expectations-in-japan |access-date=31 May 2024 |archive-date=31 May 2024 |archive-url= https://web.archive.org/web/20240531120358/https://www.frbsf.org/research-and-insights/publications/economic-letter/2024/05/whats-up-with-inflation-expectations-in-japan/ |url-status=live}}</ref><ref name=":2">{{Cite web |date=22 June 2022 |title=Inflation and the Weak Yen |work=FPCJ.jp |publisher=Foreign Press Center Japan |url= https://fpcj.jp/en/j_views-en/magazine_articles-en/p=95440/ |access-date=31 May 2024 |archive-date=31 May 2024 |archive-url= https://web.archive.org/web/20240531230101/https://fpcj.jp/en/j_views-en/magazine_articles-en/p=95440/ |url-status=live}}</ref> As of 2021, Japan has significantly higher [[National debt of Japan|public debt]] than other developed nations, at approximately 260% of GDP.<ref name="Nikkeimoneypushers">{{cite web |url= https://asia.nikkei.com/Spotlight/The-Big-Story/The-money-pushers-The-world-is-embracing-Japan-style-economics |title=Nikkei: How the world is embracing Japan style economics |first=Mitsuru |last=One |work=Nikkei |access-date=14 July 2021 |archive-date=12 April 2023 |archive-url= https://web.archive.org/web/20230412145527/https://asia.nikkei.com/Spotlight/The-Big-Story/The-money-pushers-The-world-is-embracing-Japan-style-economics |url-status=live}}</ref><ref name="debttogdp">{{cite web |url= https://www.statista.com/statistics/267226/japans-national-debt-in-relation-to-gross-domestic-product-gdp/ |title=National debt from 2016 to 2026 in relation to gross domestic product |last=Aaron |first=O'Neill |work=statista |date=July 2022 |quote=National debt from 2017 to 2027 |access-date=31 May 2021 |archive-date=2 June 2021 |archive-url= https://web.archive.org/web/20210602213716/https://www.statista.com/statistics/267226/japans-national-debt-in-relation-to-gross-domestic-product-gdp/ |url-status=live}}</ref> 45% of this debt is held by the Bank of Japan, and most of the remainder is also held domestically.<ref name="Nikkeimoneypushers" /> The Japanese economy faces considerable challenges posed by an [[Aging of Japan|ageing and declining population]], which peaked at 128.5 million people in 2010 and has fallen to 122.6 million people in 2024.<ref>{{cite web |url= https://www.stat.go.jp/english/data/jinsui/tsuki/index.html |work=Statistics Burea of Japan |date=2023 |title=Monthly Report (Population) |access-date=24 April 2024 |archive-date=5 April 2018 |archive-url= https://web.archive.org/web/20180405030144/https://www.stat.go.jp/english/data/jinsui/tsuki/index.html |url-status=live}}</ref> In 2022, the country's working age population consisted of approximately 59.4% of the total population, which was the lowest rate among all the OECD countries.<ref>{{Cite web |title=Demography - Working age population - OECD Data |url= http://data.oecd.org/pop/working-age-population.htm |access-date=31 May 2024 |work=theOECD |archive-date=16 May 2024 |archive-url= https://web.archive.org/web/20240516174359/https://data.oecd.org/pop/working-age-population.htm |url-status=live}}</ref> According to 2023 government projections, the country's population will fall to 87 million by 2070, with only 45 million of working age.<ref>{{Cite web |title=日本の将来推計人口（全国） |url=https://www.ipss.go.jp/pp-zenkoku/j/zenkoku2023/pp_zenkoku2023.asp |access-date=2025-04-24 |website=国立社会保障・人口問題研究所 |language=ja}}</ref> ==History== {{Main|Economic history of Japan}} The economic history of Japan is one of the most studied. Major milestones in modern Japan's economic progress include: * The foundation of the [[Tokugawa shogunate]] based in [[Edo (Tokyo)|Edo]] (in 1603), initiating a period of internal economic development. * The [[Meiji Restoration]] (in 1868) leading to Japan becoming the first non-European modern world power. * [[surrender of Japan|Japan's defeat in World War II]] (in 1945), after which the island nation rose to become the world's second-largest economy. * The [[Lost Decades]] (the 1990s, 2000s and arguably 2010s), during which the country struggled to get out of deflation and extremely low or negative growth. === Edo period (1603–1868) === <!-- PLEASE MAKE CHANGES TO THE MAIN ARTICLES AND THEN UPDATE HERE.--> [[File:Hiroshige, Sugura street.jpg|thumb|An 1856 [[ukiyo-e]] depicting Echigoya, the current [[Mitsukoshi]]|left]] The beginning of the [[Edo period]] coincides with the last decades of the [[Nanban trade|Nanban trade period]], marked by intense interaction with European powers. Japan built its first Western-style warships, such as the [[San Juan Bautista (ship)|''San Juan Bautista'']], and commissioned around 350 [[Red seal ships|Red Seal Ships]] for intra-Asian commerce. Japanese adventurers, such as [[Yamada Nagamasa]], were active throughout Asia.<ref>{{Cite web |title=Yosha Bunko |url= http://yoshabunko.com/history/Yamada_Nagamasa_in_Siam.html |access-date=31 May 2024 |work=yoshabunko.com |archive-date=24 September 2023 |archive-url= https://web.archive.org/web/20230924003001/http://yoshabunko.com/history/Yamada_Nagamasa_in_Siam.html |url-status=live}}</ref> To eradicate [[Christianization|Christian influence]], Japan entered a period of isolation called ''[[sakoku]]'' in the 1630s, which led to economic stability and mild progress. In the 1650s, [[Japanese export porcelain]] production increased significantly due to [[Transition from Ming to Qing|a civil war in China]], mainly in [[Kyushu]].<ref>{{Cite web |title=Hizen: The Cradle of Japanese Porcelain {{!}} Saga, Nagasaki {{!}} Japan Heritage |url= https://jnto.cb.bunka.go.jp/popular/e561822d-ce94-4557-9f1a-7d6b09ee543b |access-date=31 May 2024 |work=Japan Heritage Official Site {{!}} Stories and travel information {{!}} JNTO }}{{Dead link|date=June 2024 |bot=InternetArchiveBot |fix-attempted=yes}}</ref> 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 included [[Urbanization|urbanisation]], increased commodity shipping, and expanded domestic and foreign commerce. The construction trades, banking facilities, and merchant associations flourished. [[Daimyo|''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 and [[handicraft]] production.<ref>{{Cite web |last=日本放送協会 |title=文字と画像で見る {{!}} 日本史 |url= https://www.nhk.or.jp/kokokoza/nihonshi/contents/resume/resume_0000000594.html |access-date=31 May 2024 |work=高校講座 |language=ja |archive-date=1 June 2024 |archive-url= https://web.archive.org/web/20240601005822/https://www.nhk.or.jp/kokokoza/nihonshi/contents/resume/resume_0000000594.html |url-status=live}}</ref> Rice, the economy’s base, was taxed at about 40% of the harvest and sold at the fudasashi market in Edo. [[Daimyo|''Daimyō'']] used [[forward contract]]s similar to modern futures trading to sell rice before harvest.<ref>{{Cite web |author=<!--Staff writer(s); no by-line.--> |title=Dojima rice exchange: The world's first futures exchange |work=JPX: Japan Exchange Group |publisher=[[Osaka Exchange]] |date=2020 |url= https://www.jpx.co.jp/dojima/en/index.html |access-date=15 March 2025 |url-status=live |archive-url= https://web.archive.org/web/20231129214838/https://www.jpx.co.jp/dojima/en/index.html |archive-date=29 November 2023}}</ref> During the ''sakoku'' 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 the [[United States]] twice in 1853 and 1854.<ref>{{Cite web |title=The Coming of the 'Black Ships' (kurofune) to Japan {{!}} Edo no Taihen (great pivotal events of Edo) |url= https://www.library.metro.tokyo.lg.jp/portals/0/edo/tokyo_library/english/taihen/page3-1.html |access-date=31 May 2024 |work=library.metro.tokyo.lg.jp |archive-date=1 March 2024 |archive-url= https://web.archive.org/web/20240301042220/https://www.library.metro.tokyo.lg.jp/portals/0/edo/tokyo_library/english/taihen/page3-1.html |url-status=live}}</ref> === Pre-war period (1868–1945) === <!-- PLEASE MAKE CHANGES TO THE MAIN ARTICLES AND THEN UPDATE HERE.--> Since the mid-19th century, after the [[Meiji Restoration]], the country was opened up to Western commerce and influence and went through a period of economic development that extended through to the [[World War I|First World War]].<ref>{{Cite web |title=The Meiji Restoration and Modernization {{!}} Asia for Educators {{!}} Columbia University |url= http://afe.easia.columbia.edu/special/japan_1750_meiji.htm |access-date=3 October 2022 |work=afe.easia.columbia.edu |archive-date=2 July 2012 |archive-url= https://web.archive.org/web/20120702114058/http://afe.easia.columbia.edu/special/japan_1750_meiji.htm |url-status=live}}</ref> Economic developments of the [[Empire of Japan|prewar period]] began with the "[[Fukoku kyōhei|Rich State and Strong Army Policy]]" by the [[Meiji government]]. During the [[Meiji 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.<ref>{{Cite web |title=Japan - The Economy - Patterns of Development |url= https://countrystudies.us/japan/98.htm |access-date=3 October 2023 |work=countrystudies.us |archive-date=9 October 2023 |archive-url= https://web.archive.org/web/20231009172123/https://countrystudies.us/japan/98.htm |url-status=live}}</ref> To promote [[industrialisation]], 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 larger [[conglomerate (company)|conglomerates]] such as [[Mitsubishi]]. Government emerged as chief promoter of [[private enterprise]], enacting a series of pro-business policies.<ref>{{Cite web |date=8 December 2021 |title=5.6G: The Government's Role in Industrialization |url= https://thothios.com/c-1750-to-1900/unit-5-revolutions/5-6g-the-governments-role-in-industrialization/ |access-date=5 November 2022 |work=Thothios |archive-date=5 November 2022 |archive-url= https://web.archive.org/web/20221105195535/https://thothios.com/c-1750-to-1900/unit-5-revolutions/5-6g-the-governments-role-in-industrialization/ |url-status=live}}</ref> === Post-war period (1945–1989) === {{See also|Japanese economic miracle|}} [[File:2005Japanese exports.PNG|thumb|right|300px|Japanese exports partners in 2005]] Japan underwent significant economic transformation and rapid recovery and growth, emerging from the devastation of the [[World War II|Second World War]] to become a global economic powerhouse. The immediate post-war period saw Japan slowly recovering as a democratic nation under the [[Allied Occupation of Japan|Allied Occupation]]. The [[Korean 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|Japanese Economic Miracle]]'. Key factors in this growth included government-industry cooperation, a strong work ethic, advanced technology, and a focus on export-oriented [[Manufacturing in Japan|manufacturing]]. Japan’s economy diversified from textiles to steel, shipbuilding, and eventually electronics and automobiles, with companies such as [[Toyota]], [[Sony]], [[Hitachi]] and [[Honda]] becoming household names worldwide.<ref>{{Cite encyclopedia |date=31 May 2024 |title=Japan {{!}} History, Flag, Map, Population, & Facts |url= https://www.britannica.com/place/Japan |access-date=31 May 2024 |encyclopedia=[[Britannica.com]] |archive-date=8 October 2023 |archive-url= https://web.archive.org/web/20231008141219/https://www.britannica.com/place/Japan |url-status=live}}</ref> In 1968, Japan became the world’s third-largest economy then the second largest in the 1988, surpassing the economy of 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 ({{lang|ja-Latn|[[kaizen]]}}) further boosted its international competitiveness.<ref>{{Cite web |title=Kaizen: Understanding the Japanese Business Philosophy |url= https://www.investopedia.com/terms/k/kaizen.asp |access-date=31 May 2024 |work=Investopedia |archive-date=29 April 2024 |archive-url= https://web.archive.org/web/20240429115839/https://www.investopedia.com/terms/k/kaizen.asp |url-status=live}}</ref> 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.<ref>{{Cite web |title=Slowdown |url= https://www.grips.ac.jp/teacher/oono/hp/lecture_J/lec12.htm |access-date=31 May 2024 |work=www.grips.ac.jp |archive-date=29 May 2024 |archive-url= https://web.archive.org/web/20240529111446/http://www.grips.ac.jp/teacher/oono/hp/lecture_J/lec12.htm |url-status=live}}</ref> However, the late 1980s also saw the infamous [[Plaza 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. === Heisei period (1989–2019) === {{See also|Lost Decades}}[[File:G7 Countries GDP Per Capita (1990-2029).png|thumb|300x300px|Japan's nominal GDP per capita stagnated around $40,000 for the entire period.]] [[File:Japan bonds.webp|thumb|300px|{{center|Japan bonds}} [[Inverted yield curve]] in 1990 <br /> [[Zero interest-rate policy]] started in 1999<ref>{{cite web | url=https://www.weforum.org/stories/2024/03/japan-ends-negative-interest-rates-economy-monetary-policy/#:~:text=%E2%80%9CBOJ%2520decided%2520to%2520implement%2520a,%252C%2520namely%25200.25%2520to%25200.5%2525 | title=Japan ends era of negative interest rates. Here's why }}</ref> {{legend-line|#00A2FF solid 3px|30 year}} {{legend-line|#61D836 solid 3px|20 year}} {{legend-line|#929292 solid 3px|10 year}} {{legend-line|#F8BA00 solid 3px|5 year}} {{legend-line|#FF2600 solid 3px|2 year}} {{legend-line|#73FDEA solid 3px|1 year}} ]] [[File:Japan money supply and inflation.webp|thumb|300px|Japan money supply and inflation (year over year) {{legend-line|#BC002D solid 3px|M2 money supply}} {{legend-line|#FFD932 solid 3px|Inflation}} ]] Growth slowed markedly in the late 1990s also termed the [[Lost Decades|Lost Decade]] after the collapse of [[Japanese asset price bubble]]. As a consequence Japan ran massive budget deficits (added trillions in Yen to Japanese financial system) to finance large [[public 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 used [[quantitative 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 and [[Economy of the European Union|European Union]] during the same period.<ref>Masake, Hisane. [https://web.archive.org/web/20060311003951/http://atimes.com/atimes/Japan/HC02Dh01.html A farewell to zero]. ''Asia Times Online'' (2 March 2006). Retrieved on 28 December 2006.</ref> Unlike previous recovery trends, domestic consumption has been the dominant factor of growth. [[File:Japanese Bond Market.webp|thumb|300px|Japanese bond market <br /> [[Negative interest on excess reserves|Negative interest rates]] started in 2014. {{legend-line|#FF42A1 solid 3px|40 year bond}} {{legend-line|#BC002D solid 3px|10 year bond}} {{legend-line|#61D836 solid 3px|5 year bond}} {{legend-line|#00A2FF solid 3px|1 year bond}} {{legend-line|#F27200 solid 3px|1 month bond}} ]] Despite having interest rates down near zero for a long period of time, the quantitative easing strategy did not succeed in stopping price deflation.<ref>{{cite news |last=Spiegel |first=Mark |title=Did Quantitative Easing by the Bank of Japan 'Work'? |date=20 October 2006 |url= http://www.frbsf.org/publications/economics/letter/2006/el2006-28.html |access-date=23 December 2008 |archive-date=19 October 2012 |archive-url= https://web.archive.org/web/20121019135129/http://www.frbsf.org/publications/economics/letter/2006/el2006-28.html |url-status=dead}}</ref> This led some economists, such as Paul Krugman, and some Japanese politicians, to advocate the generation of higher inflation expectations.<ref>{{cite web |url= http://web.mit.edu/krugman/www/jpage.html |title=Saving Japan |first=Paul |last=Krugman |work=web.mit.edu |access-date=23 December 2008 |archive-date=20 October 2008 |archive-url= https://web.archive.org/web/20081020111606/http://web.mit.edu/krugman/www/jpage.html |url-status=live}}</ref> 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<ref>{{cite news |title=Economic survey of Japan 2008: Bringing an end to deflation under the new monetary policy framework |date=7 April 2008 |url= http://www.oecd.org/document/12/0,3343,en_2649_34115_40363340_1_1_1_1,00.html |access-date=23 December 2008 |archive-date=25 May 2009 |archive-url= https://web.archive.org/web/20090525080450/http://www.oecd.org/document/12/0,3343,en_2649_34115_40363340_1_1_1_1,00.html |url-status=live}}</ref> and the Nikkei 225 has fallen over approximately 50% (between June 2007 and December 2008). However, on 5 April 2013, the [[Bank 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 the [[Nikkei 225]] adding more than 42% since November 2012.<ref>{{cite news |url= https://money.cnn.com/2013/04/04/news/economy/bank-of-japan-decision/index.html |publisher=CNN |first=Charles |last=Riley |title=Bank of Japan takes fight to deflation |date=4 April 2013 |access-date=3 August 2020 |archive-date=29 October 2020 |archive-url= https://web.archive.org/web/20201029175923/https://money.cnn.com/2013/04/04/news/economy/bank-of-japan-decision/index.html |url-status=live}}</ref> ''[[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, a [[free trade agreement]] between Japan and the [[European Union]] was cleared to commence in February 2019. It creates the world's largest [[free 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.<ref>{{cite web |title=EU-Japan free trade deal cleared for early 2019 start |url= https://www.reuters.com/article/us-eu-japan-trade-idUSKBN1OB1EN |work=Reuters |date=12 December 2018 |access-date=23 October 2020 |archive-url= https://web.archive.org/web/20200616210243/https://www.reuters.com/article/us-eu-japan-trade-idUSKBN1OB1EN |archive-date=16 June 2020}}</ref> === Reiwa period (2020–present) === === 2020–21 recession === In early January 2020, Japanese economy began to suffer from the [[COVID-19 pandemic in Japan|COVID-19 pandemic]]. In early April, Japanese Prime Minister [[Shinzo Abe]] announced a [[state of emergency]].<ref>{{cite news |url= https://www.npr.org/sections/coronavirus-live-updates/2020/04/16/835925031/japans-declares-nationwide-state-of-emergency-as-coronavirus-spreads |title=Japan Declares Nationwide State of Emergency as Coronavirus Spreads |first=Brakkton |last=Booker |publisher=NPR |date=16 April 2020 |access-date=16 April 2020 |archive-date=16 April 2020 |archive-url= https://web.archive.org/web/20200416175358/https://www.npr.org/sections/coronavirus-live-updates/2020/04/16/835925031/japans-declares-nationwide-state-of-emergency-as-coronavirus-spreads |url-status=live}}</ref><ref name="416emergency">{{cite news |url= https://www.bloomberg.com/news/articles/2020-04-07/japan-s-abe-declares-state-of-emergency-over-coronavirus |title=Japan Declares Emergency For Tokyo, Osaka as Hospitals Fill Up |first1=Isabel |last1=Reynolds |first2=Emi |last2=Nobuhiro |publisher=Bloomberg |date=7 April 2020 |access-date=16 April 2020 |archive-date=8 April 2020 |archive-url= https://web.archive.org/web/20200408011125/https://www.bloomberg.com/news/articles/2020-04-07/japan-s-abe-declares-state-of-emergency-over-coronavirus |url-status=live}}</ref> Less than a quarter of Japanese people expected living conditions to improve in the coming decades.<ref>The Economist, 28 March 2020, page 4.</ref> In October 2020 during the pandemic, Japan and the [[United 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.<ref>{{cite news |title=Britain signs first major post-Brexit trade deal with Japan |url= https://www.reuters.com/article/instant-article/idUSKBN2780HG |work=Reuters |date=23 October 2020 |access-date=23 October 2020 |archive-url= https://web.archive.org/web/20201023152555/https://www.reuters.com/article/britain-japan-trade/britain-signs-first-major-post-brexit-trade-deal-with-japan-idINKBN2780HG |archive-date=23 October 2020}}</ref><ref>{{cite web |title=UK and Japan agree historic free trade agreement |url= https://www.gov.uk/government/news/uk-and-japan-agree-historic-free-trade-agreement |publisher=Gov.uk (Government of the United Kingdom) |access-date=12 September 2020 |archive-url= https://web.archive.org/web/20200911085404/https://www.gov.uk/government/news/uk-and-japan-agree-historic-free-trade-agreement |archive-date=11 September 2020 |url-status=live}}</ref> On 15 February 2021, the Nikkei average breached the 30k benchmark, the highest since November 1991.<ref name="30kbenchmark" /> It was due to strong corporate earnings, GDP data and optimism over the [[COVID-19 vaccination in Japan|COVID-19 vaccination program]] in the country.<ref name="30kbenchmark">{{cite web |title=Nikkei index hits 30,000 for first time in three decades |work=Nikkei |url= https://asia.nikkei.com/Business/Markets/Nikkei-index-hits-30-000-for-first-time-in-three-decades |date=15 February 2021 |archive-url= https://web.archive.org/web/20210215143613/https://asia.nikkei.com/Business/Markets/Nikkei-index-hits-30-000-for-first-time-in-three-decades |archive-date=15 February 2021}}</ref> === Post-recession (2021–present) === At the end of March 2022, the [[Ministry of Finance (Japan)|Ministry of Finance]] announced that the national debt reached precisely 1.017 million billion yen.<ref name="medium">{{cite web |author=Sylvain Saurel |date=13 May 2022 |title=Japan Exceeds One Million Billion Yen in Debt — "Whatever It Takes" Has Become the Norm. |url= https://ssaurel.medium.com/japan-exceeds-one-million-billion-yen-in-debt-whatever-it-takes-has-become-the-norm-9adc5f501327 |archive-url= https://archive.today/20220513205120/https://ssaurel.medium.com/japan-exceeds-one-million-billion-yen-in-debt-whatever-it-takes-has-become-the-norm-9adc5f501327 |archive-date=13 May 2022 |work=Medium.com}}</ref> 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.<ref name="medium" /> 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.”<ref name="medium" /> The [[Bank of Japan]]'s main policy aim since the Lost Decades started had been to end [[deflation]] and eventually achieve 2% [[inflation]].<ref name="japandebt" /> The increased international economic tension brought about by events such as the [[Russian invasion of Ukraine|Russian Invasion of Ukraine]] in 2022 finally helped the country achieve the much-anticipated inflation target of 2%, and the [[Negative interest rate|negative interest policy]] since 2016 was ended in March 2024.<ref name=":1" /><ref name=":2" /> 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, the [[Japanese yen]] has become extremely weak, hitting a 37.5-year low of 161 yen/USD in July 2024.<ref>{{Cite web |date=30 April 2024 |title=The Yen Appreciates Greatly, Rising from 160 Yen/USD to 154 Yen/USD |url= https://www.nikkei.com/article/DGKKZO80360730Q4A430C2MM8000/ |access-date=2 June 2024 |work=[[The Nikkei]] |language=ja}}</ref><ref>{{Cite web |last=日本放送協会 |date=3 July 2024 |title=円相場 一時1ドル161円90銭台に 約37年半ぶりの円安水準更新 {{!}} NHK |url= https://www3.nhk.or.jp/news/html/20240703/k10014500461000.html |access-date=11 July 2024 |work=NHKニュース}}</ref> Furthermore, the [[Effective exchange rate|real 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.<ref>{{Cite news |script-title=ja:円の実力、なぜ過去最低水準 金利差だけではない日本経済の「弱さ」：朝日新聞デジタル |trans-title=Why is the yen's strength at its lowest level ever? The weakness of the Japanese economy is not just due to the interest rate differential |work=Asahi Shimbun Digital |publisher=[[The Asahi Shimbun]] |url= https://www.asahi.com/articles/ASRDQ413ZRCQULFA014.html |date=25 December 2023 |access-date=13 April 2024 |language=ja |archive-date=30 January 2024 |archive-url= https://web.archive.org/web/20240130100406/https://www.asahi.com/articles/ASRDQ413ZRCQULFA014.html |url-status=live |url-access=subscription}}</ref><ref>{{Cite web |date=26 April 2024 |title=（時時刻刻）口先介入、薄れた効果 １カ月４円下落「市場に見透かされ」：朝日新聞デジタル |trans-title=(Time and Time) Lip service, faded effect, 4 yen drop in one month 'The market saw through' |work=Asahi Shimbun Digital |url= https://www.asahi.com/articles/DA3S15921049.html?iref=ogimage_rek |access-date=28 April 2024 |language=ja}}</ref><ref>{{Cite web |date=9 May 2024 |title=このままでは日本の伝統的企業が海外に買われていく…円安が止まらない日本を待ち受ける"最悪のシナリオ" 政府は円安政策を意図的に進めているように見える |trans-title=If things continue like this, traditional Japanese companies will be bought out by foreign companies...The 'worst case scenario' awaits Japan as the yen continues to depreciate.The government appears to be intentionally pursuing a policy of depreciating the yen. |url= https://president.jp/articles/-/81436 |access-date=13 May 2024 |work=PRESIDENT Online（プレジデントオンライン） |language=ja}}</ref><ref>{{Cite web |title=円の国際価値が過去最低、BIS ドルなどと大差、通貨地位揺らぐ |url= https://www.47news.jp/11086746.html |access-date=21 June 2024 |work=47NEWS |publisher=[[Kyodo News]] |language=ja}}</ref> This devaluation of the currency caused Japan to lose its status as the [[List of countries by GDP (nominal)|world’s third largest economy]] to [[Economy of Germany|Germany]] in nominal terms, which was approximately half the size of the country's economy a decade earlier.<ref name="Japan slips">{{cite news |last1=Montgomery |first1=Hanako |last2=He |first2=Laura |date=15 February 2024 |title=Japan slips into recession, allowing Germany to overtake as world's third-largest economy |url= https://edition.cnn.com/2024/02/14/economy/japan-economy-recession-hnk-intl/index.html |work=CNN }}</ref><ref name="McCurry">{{cite news |last1=McCurry |first1=Justin |date=15 February 2024 |title=Japan loses crown as world's third-largest economy after it slips into recession |url= https://www.theguardian.com/world/2024/feb/15/japan-recession-economy-falls-behind-germany-worlds-largest |work=The Guardian}}</ref><ref>{{Cite web |title=GDP - Gross Domestic Product 2012 {{!}} countryeconomy.com |url= https://countryeconomy.com/gdp?year=2012 |access-date=2 June 2024 |work=countryeconomy.com }}</ref> 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 the [[Nikkei 225]] and [[TOPIX]] 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.<ref>{{Cite web |date=4 July 2024 |title=Nikkei 225 reaches all-time-high, TSE's market cap reaches 1000 trillion yen |url= https://www.nikkei.com/article/DGXZQOUB010XY0R00C24A7000000/ |access-date=10 July 2024 |work=日本経済新聞 |language=ja}}</ref> == Macro-economic trend == ===GDP composition=== Industries by GDP value-added 2012.<ref name="stat">[http://www.pref.gifu.lg.jp/pref/s11111/data/data.htm Statistics Division of Gifu Prefecture] {{Webarchive |url= https://web.archive.org/web/20071014004923/http://www.pref.gifu.lg.jp/pref/s11111/data/data.htm |date=14 October 2007}}. {{in lang|ja}} Gifu Prefecture. Accessed 2 November 2007.</ref> Values are converted using the exchange rate on 13 April 2013.<ref name="finance.yahoo">{{cite news |url= https://finance.yahoo.com/echarts?s=usdjpy=X#symbol=;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; |work=Yahoo! Finance |title=USD/JPY – U. S. Dollar / Japanese Yen Conversion |access-date=19 June 2013 |archive-date=24 June 2013 |archive-url= https://web.archive.org/web/20130624021908/http://finance.yahoo.com/echarts?s=usdjpy=X#symbol=;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; |url-status=live}}</ref> {| class="wikitable" ![[Industrial sector|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]] and [[communication]]|| 358 || 6.8% |- |Public administration|| 329 || 6.2% |- |[[Construction]]|| 327 || 6.2% |- |Finance and insurance|| 306 || 5.8% |- |[[Electricity]], [[fuel gas|gas]] and [[water supply]]|| 179 || 3.4% |- |Government service activities ||41 || 0.7% |- |[[Mining]]||3 || 0.1% |- |Total || 5,268 || 100% |} === Development of main indicators === [[File:GDP growth rate in Japan.svg|400px|right|thumb|Real GDP growth rate]] The following table shows the main economic indicators in 1980–2023 (with IMF staff estimates in 2024–2029). Inflation under 5% is in green.<ref>{{cite web |url= https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=158,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects |access-date=27 June 2024 |archive-date=27 June 2024 |archive-url= https://web.archive.org/web/20240627095743/https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=158,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |url-status=live}}</ref> {{static row numbers}}{{sticky header}} {| class="wikitable sortable sticky-header" style="text-align:center;" !Year !GDP<br /><small>(in bn. US$PPP)</small> !GDP per capita<br /><small>(in US$ PPP)</small> !GDP<br /><small>(in bn. US$nominal)</small> !GDP per capita<br /><small>(in US$ nominal)</small> !GDP growth<br /><small>(real)</small> !Inflation rate<br /><small>(in Per cent)</small> !Unemployment<br /><small>(in Per cent)</small> !Government debt<br /><small>(in % of GDP)</small> |- |1980 |1,068.1 |9,147.0 |1,127.9 |9,659.0 |{{Increase}}3.2% |{{IncreaseNegative}}7.8% |2.0% |47.8% |- |1981 |{{Increase}}1,218.4 |{{Increase}}10,358.1 |{{Increase}}1,243.8 |{{Increase}}10,574.4 |{{Increase}}4.2% |{{Increase}}4.9% |{{IncreaseNegative}}2.2% |{{IncreaseNegative}}52.9% |- |1982 |{{Increase}}1,336.5 |{{Increase}}11,283.0 |{{Decrease}}1,157.6 |{{Decrease}}9,772.8 |{{Increase}}3.3% |{{Increase}}2.8% |{{IncreaseNegative}}2.4% |{{IncreaseNegative}}57.8% |- |1983 |{{Increase}}1,437.8 |{{Increase}}12,054.5 |{{Increase}}1,268.6 |{{Increase}}10,636.5 |{{Increase}}3.5% |{{Increase}}1.9% |{{IncreaseNegative}}2.7% |{{IncreaseNegative}}63.6% |- |1984 |{{Increase}}1,556.7 |{{Increase}}12,967.1 |{{Increase}}1,345.2 |{{Increase}}11,205.4 |{{Increase}}4.5% |{{Increase}}2.3% |{{Steady}}2.7% |{{IncreaseNegative}}65.6% |- |1985 |{{Increase}}1,690.0 |{{Increase}}13,989.8 |{{Increase}}1,427.4 |{{Increase}}11,815.8 |{{Increase}}5.2% |{{Increase}}2.0% |{{DecreasePositive}}2.6% |{{IncreaseNegative}}68.3% |- |1986 |{{Increase}}1,781.4 |{{Increase}}14,667.9 |{{Increase}}2,121.3 |{{Increase}}17,466.7 |{{Increase}}3.3% |{{Increase}}0.6% |{{IncreaseNegative}}2.8% |{{IncreaseNegative}}74.0% |- |1987 |{{Increase}}1,911.8 |{{Increase}}15,666.3 |{{Increase}}2,584.3 |{{Increase}}21,177.8 |{{Increase}}4.7% |{{Increase}}0.1% |{{IncreaseNegative}}2.9% |{{IncreaseNegative}}75.7% |- |1988 |{{Increase}}2,113.5 |{{Increase}}17,246.0 |{{Increase}}3,134.2 |{{Increase}}25,575.1 |{{Increase}}6.8% |{{Increase}}0.7% |{{DecreasePositive}}2.5% |{{DecreasePositive}}71.8% |- |1989 |{{Increase}}2,303.0 |{{Increase}}18,719.6 |{{Decrease}}3,117.1 |{{Decrease}}25,336.2 |{{Increase}}4.9% |{{Increase}}2.3% |{{DecreasePositive}}2.3% |{{DecreasePositive}}65.5% |- |1990 |{{Increase}}2,506.1 |{{Increase}}20,302.7 |{{Increase}}3,196.6 |{{Increase}}25,896.0 |{{Increase}}4.9% |{{Increase}}3.1% |{{DecreasePositive}}2.1% |{{DecreasePositive}}63.0% |- |1991 |{{Increase}}2,679.4 |{{Increase}}21,620.8 |{{Increase}}3,657.3 |{{Increase}}29,511.8 |{{Increase}}3.4% |{{Increase}}3.3% |{{Steady}}2.1% |{{DecreasePositive}}62.2% |- |1992 |{{Increase}}2,763.7 |{{Increase}}22,222.4 |{{Increase}}3,988.3 |{{Increase}}32,069.1 |{{Increase}}0.8% |{{Increase}}1.7% |{{IncreaseNegative}}2.2% |{{IncreaseNegative}}66.6% |- |1993 |{{Increase}}2,814.6 |{{Increase}}22,558.2 |{{Increase}}4,544.8 |{{Increase}}36,425.2 |{{Decrease}}-0.5% |{{Increase}}1.3% |{{IncreaseNegative}}2.5% |{{IncreaseNegative}}72.7% |- |1994 |{{Increase}}2,899.9 |{{Increase}}23,177.4 |{{Increase}}4,998.8 |{{Increase}}39,953.2 |{{Increase}}0.9% |{{Increase}}0.7% |{{IncreaseNegative}}2.9% |{{IncreaseNegative}}84.4% |- |1995 |{{Increase}}3,038.6 |{{Increase}}24,224.0 |{{Increase}}5,545.6 |{{Increase}}44,210.2 |{{Increase}}2.6% |{{Increase}}-0.1% |{{IncreaseNegative}}3.2% |{{IncreaseNegative}}92.5% |- |1996 |{{Increase}}3,191.2 |{{Increase}}25,385.0 |{{Decrease}}4,923.4 |{{Decrease}}39,164.3 |{{Increase}}3.1% |{{Increase}}0.1% |{{IncreaseNegative}}3.4% |{{IncreaseNegative}}98.1% |- |1997 |{{Increase}}3,278.1 |{{Increase}}26,014.1 |{{Decrease}}4,492.4 |{{Decrease}}35,651.3 |{{Increase}}1.0% |{{Increase}}1.7% |{{Steady}}3.4% |{{IncreaseNegative}}105.0% |- |1998 |{{Decrease}}3,272.8 |{{Decrease}}25,903.3 |{{Decrease}}4,098.4 |{{Decrease}}32,436.9 |{{Decrease}}-1.3% |{{Increase}}0.7% |{{IncreaseNegative}}4.1% |{{IncreaseNegative}}116.0% |- |1999 |{{Increase}}3,307.9 |{{Increase}}26,131.3 |{{Increase}}4,636.0 |{{Increase}}36,622.9 |{{Decrease}}-0.3% |{{Increase}}-0.3% |{{IncreaseNegative}}4.7% |{{IncreaseNegative}}129.5% |- |2000 |{{Increase}}3,476.3 |{{Increase}}27,409.2 |{{Increase}}4,968.4 |{{Increase}}39,173.0 |{{Increase}}2.8% |{{Increase}}-0.7% |{{Steady}}4.7% |{{IncreaseNegative}}135.6% |- |2001 |{{Increase}}3,568.4 |{{Increase}}28,068.3 |{{Decrease}}4,374.7 |{{Decrease}}34,410.7 |{{Increase}}0.4% |{{Increase}}-0.7% |{{IncreaseNegative}}5.0% |{{IncreaseNegative}}145.1% |- |2002 |{{Increase}}3,625.5 |{{Increase}}28,457.7 |{{Decrease}}4,182.8 |{{Decrease}}32,832.3 |{{Increase}}0.0% |{{Increase}}-0.9% |{{IncreaseNegative}}5.4% |{{IncreaseNegative}}154.1% |- |2003 |{{Increase}}3,753.8 |{{Increase}}29,410.9 |{{Increase}}4,519.6 |{{Increase}}35,410.2 |{{Increase}}1.5% |{{Increase}}-0.3% |{{DecreasePositive}}5.2% |{{IncreaseNegative}}160.0% |- |2004 |{{Increase}}3,938.9 |{{Increase}}30,836.4 |{{Increase}}4,893.1 |{{Increase}}38,307.1 |{{Increase}}2.2% |{{Increase}}0.0% |{{DecreasePositive}}4.7% |{{IncreaseNegative}}169.5% |- |2005 |{{Increase}}4,135.7 |{{Increase}}32,372.7 |{{Decrease}}4,831.5 |{{Decrease}}37,819.1 |{{Increase}}1.8% |{{Increase}}-0.3% |{{DecreasePositive}}4.4% |{{IncreaseNegative}}174.3% |- |2006 |{{Increase}}4,321.8 |{{Increase}}33,831.1 |{{Decrease}}4,601.7 |{{Decrease}}36,021.9 |{{Increase}}1.4% |{{Increase}}0.3% |{{DecreasePositive}}4.1% |{{DecreasePositive}}174.0% |- |2007 |{{Increase}}4,504.5 |{{Increase}}35,257.9 |{{Decrease}}4,579.7 |{{Decrease}}35,847.2 |{{Increase}}1.5% |{{Increase}}0.0% |{{DecreasePositive}}3.8% |{{DecreasePositive}}172.8% |- |2008 |{{Increase}}4,534.6 |{{Increase}}35,512.2 |{{Increase}}5,106.7 |{{Increase}}39,992.1 |{{Decrease}}-1.2% |{{Increase}}1.4% |{{IncreaseNegative}}4.0% |{{IncreaseNegative}}180.7% |- |2009 |{{Decrease}}4,303.9 |{{Decrease}}33,742.5 |{{Increase}}5,289.5 |{{Increase}}41,469.8 |{{Decrease}}-5.7% |{{Increase}}-1.3% |{{IncreaseNegative}}5.1% |{{IncreaseNegative}}198.7% |- |2010 |{{Increase}}4,534.1 |{{Increase}}35,535.2 |{{Increase}}5,759.1 |{{Increase}}45,135.8 |{{Increase}}4.1% |{{Increase}}-0.7% |{{Steady}}5.1% |{{IncreaseNegative}}205.7% |- |2011 |{{Increase}}4,629.4 |{{Increase}}36,215.1 |{{Increase}}6,233.1 |{{Increase}}48,760.9 |{{Increase}}0.0% |{{Increase}}-0.3% |{{DecreasePositive}}4.6% |{{IncreaseNegative}}219.1% |- |2012 |{{Increase}}4,799.6 |{{Increase}}37,628.8 |{{Increase}}6,272.4 |{{Increase}}49,175.1 |{{Increase}}1.4% |{{Increase}}0.0% |{{DecreasePositive}}4.3% |{{IncreaseNegative}}226.1% |- |2013 |{{Increase}}5,021.6 |{{Increase}}39,436.8 |{{Decrease}}5,212.3 |{{Decrease}}40,934.8 |{{Increase}}2.0% |{{Increase}}0.3% |{{DecreasePositive}}4.0% |{{IncreaseNegative}}229.6% |- |2014 |{{Increase}}5,034.5 |{{Increase}}39,604.1 |{{Decrease}}4,897.0 |{{Decrease}}38,522.8 |{{Increase}}0.3% |{{Increase}}2.8% |{{DecreasePositive}}3.6% |{{IncreaseNegative}}233.5% |- |2015 |{{Increase}}5,200.9 |{{Increase}}40,959.3 |{{Decrease}}4,444.9 |{{Decrease}}35,005.7 |{{Increase}}1.6% |{{Increase}}0.8% |{{DecreasePositive}}3.4% |{{DecreasePositive}}228.3% |- |2016 |{{Decrease}}5,159.7 |{{Decrease}}40,640.5 |{{Increase}}5,003.7 |{{Increase}}39,411.4 |{{Increase}}0.8% |{{Increase}}-0.1% |{{DecreasePositive}}3.1% |{{IncreaseNegative}}232.4% |- |2017 |{{Increase}}5,248.4 |{{Increase}}41,409.0 |{{Decrease}}4,930.8 |{{Decrease}}38,903.3 |{{Increase}}1.7% |{{Increase}}0.5% |{{DecreasePositive}}2.8% |{{DecreasePositive}}231.3% |- |2018 |{{Increase}}5,403.2 |{{Increase}}42,714.6 |{{Increase}}5,040.9 |{{Increase}}39,850.3 |{{Increase}}0.6% |{{Increase}}1.0% |{{DecreasePositive}}2.4% |{{IncreaseNegative}}232.4% |- |2019 |{{Increase}}5,471.8 |{{Increase}}43,351.0 |{{Increase}}5,118.0 |{{Increase}}40,548.0 |{{Decrease}}-0.4% |{{Increase}}0.5% |{{Steady}}2.4% |{{IncreaseNegative}}236.4% |- |2020 |{{Decrease}}5,314.1 |{{Decrease}}42,226.3 |{{Decrease}}5,055.6 |{{Decrease}}40,171.9 |{{Decrease}}-4.1% |{{Increase}}0.0% |{{IncreaseNegative}}2.8% |{{IncreaseNegative}}258.3% |- |2021 |{{Increase}}5,700.0 |{{Increase}}45,416.0 |{{Decrease}}5,034.6 |{{Decrease}}40,114.3 |{{Increase}}2.6% |{{Increase}}-0.2% |{{Steady}}2.8% |{{DecreasePositive}}253.9% |- |2022 |{{Increase}}6,159.8 |{{Increase}}49,210.6 |{{Decrease}}4,256.4 |{{Decrease}}34,004.7 |{{Increase}}1.0% |{{Increase}}2.5% |{{DecreasePositive}}2.6% |{{IncreaseNegative}}257.2% |- |2023 |{{Increase}}6,507.1 |{{Increase}}52,214.6 |{{Decrease}}4,212.9 |{{Decrease}}33,805.9 |{{Increase}}1.9% |{{Increase}}3.3% |{{Steady}}2.6% |{{DecreasePositive}}252.4% |- |2024 |{{Increase}}6,721.0 |{{Increase}}54,183.9 |{{Decrease}}4,110.5 |{{Decrease}}33,138.2 |{{Increase}}0.9% |{{Increase}}2.2% |{{DecreasePositive}}2.5% |{{IncreaseNegative}}254.6% |- |2025 |{{Increase}}6,908.4 |{{Increase}}55,970.4 |{{Increase}}4,310.4 |{{Increase}}34,921.6 |{{Increase}}1.0% |{{Increase}}2.1% |{{Steady}}2.5% |{{DecreasePositive}}252.6% |- |2026 |{{Increase}}7,094.9 |{{Increase}}57,778.4 |{{Increase}}4,499.5 |{{Increase}}36,642.7 |{{Increase}}0.8% |{{Increase}}2.0% |{{Steady}}2.5% |{{DecreasePositive}}251.3% |- |2027 |{{Increase}}7,271.8 |{{Increase}}59,538.8 |{{Increase}}4,649.1 |{{Increase}}38,064.8 |{{Increase}}0.6% |{{Increase}}2.0% |{{Steady}}2.5% |{{DecreasePositive}}251.0% |- |2028 |{{Increase}}7,451.9 |{{Increase}}61,354.8 |{{Increase}}4,836.3 |{{Increase}}39,819.6 |{{Increase}}0.6% |{{Increase}}2.0% |{{Steady}}2.5% |{{Steady}}251.0% |- |2029 |{{Increase}}7,628.2 |{{Increase}}63,170.9 |{{Increase}}4,944.7 |{{Increase}}40,948.6 |{{Increase}}0.4% |{{Increase}}2.0% |{{Steady}}2.5% |{{IncreaseNegative}}251.7% |} == Sectors of the economy == ===Agriculture=== {{Main|Agriculture, forestry, and fishing in Japan}} [[File:TawaramotoRiceField.png|thumb|Rice is a very important crop in Japan as shown here in a [[rice paddy]] in [[Tawaramoto, Nara]].]] The Japanese agricultural sector accounts for about 1.1% (2017) of the total country's GDP.<ref name="Japan Country Report" /> Only 12% of Japan's land is suitable for cultivation.<ref name="As Farmers Age, Japan Rethinks Relationship with Food, Fields">{{cite web |url= https://www.pbs.org/newshour/bb/social_issues/jan-june12/9billion_06-12.html |title=As Farmers Age, Japan Rethinks Relationship with Food, Fields |work=[[PBS]] |date=12 June 2012 |access-date=21 November 2013 |url-status=dead |archive-url= https://web.archive.org/web/20131121103417/http://www.pbs.org/newshour/bb/social_issues/jan-june12/9billion_06-12.html |archive-date=21 November 2013}}</ref><ref name="Trip Report - Japan Agricultural Situation">{{cite web |url= http://www.pecad.fas.usda.gov/highlights/2012/08/Japantrip/ |title=Trip Report – Japan Agricultural Situation |work=[[United States Department of Agriculture]] |date=17 August 2012 |access-date=21 November 2013 |archive-date=6 May 2016 |archive-url= https://web.archive.org/web/20160506220310/http://www.pecad.fas.usda.gov/highlights/2012/08/Japantrip/ |url-status=dead}}</ref> Due to this lack of arable land, a system of terraces is used to farm in small areas.<ref name="Urbanites Help Sustain Japan's Historic Rice Paddy Terraces">{{cite web |author1=Nagata, Akira |author2=Chen, Bixia |url= http://ourworld.unu.edu/en/the-people-who-sustain-japans-historic-terraced-rice-fields |title=Urbanites Help Sustain Japan's Historic Rice Paddy Terraces |work=Our World |date=22 May 2012 |access-date=21 November 2013 |archive-date=24 September 2016 |archive-url= https://web.archive.org/web/20160924164244/http://ourworld.unu.edu/en/the-people-who-sustain-japans-historic-terraced-rice-fields |url-status=live}}</ref> 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 km<sup>2</sup> (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.<ref name="As Farmers Age, Japan Rethinks Relationship with Food, Fields" /> There has been a growing concern about farming as the current farmers are aging with a difficult time finding successors.<ref name="How will Japan's farms survive?">{{cite web |url= http://www.japantimes.co.jp/opinion/2013/06/28/editorials/how-will-japans-farms-survive/ |title=How will Japan's farms survive? |work=[[The Japan Times]] |date=28 June 2013 |access-date=21 November 2013 |archive-date=4 November 2016 |archive-url= https://web.archive.org/web/20161104234240/http://www.japantimes.co.jp/opinion/2013/06/28/editorials/how-will-japans-farms-survive/ |url-status=live}}</ref> Rice accounts for almost all of Japan's cereal production.<ref name="Japan - Agriculture">{{cite encyclopedia |url= http://www.nationsencyclopedia.com/Asia-and-Oceania/Japan-AGRICULTURE.html#b |title=Japan – Agriculture |encyclopedia=Nations Encyclopedia |access-date=21 November 2013 |archive-date=3 July 2016 |archive-url= https://web.archive.org/web/20160703043518/http://www.nationsencyclopedia.com/Asia-and-Oceania/Japan-AGRICULTURE.html#b |url-status=live}}</ref> Japan is the second-largest agricultural product importer in the world.<ref name="Japan - Agriculture" /> Rice, the most protected crop, is subject to tariffs of 777.7%.<ref name="Trip Report - Japan Agricultural Situation" /><ref name="With fewer, bigger plots and fewer part-time farmers, agriculture could compete">{{cite news |url= https://www.economist.com/news/asia/21576154-fewer-bigger-plots-and-fewer-part-time-farmers-agriculture-could-compete-field-work |title=With fewer, bigger plots and fewer part-time farmers, agriculture could compete |newspaper=[[The Economist]] |date=13 April 2013 |access-date=21 November 2013 |archive-date=20 November 2013 |archive-url= https://web.archive.org/web/20131120232831/http://www.economist.com/news/asia/21576154-fewer-bigger-plots-and-fewer-part-time-farmers-agriculture-could-compete-field-work |url-status=live}}</ref> 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.<ref name="Japan Immigration Work Permits and Visas">{{cite web |url= http://www.skillclear.co.uk/japan/default.asp |title=Japan Immigration Work Permits and Visas |work=Skill Clear |access-date=1 December 2013 |archive-date=3 December 2013 |archive-url= https://web.archive.org/web/20131203135640/http://www.skillclear.co.uk/japan/default.asp |url-status=dead}}</ref><ref name="Japan needs imports to keep itself fed">{{cite web |author=Nagata, Kazuaki |url= http://www.japantimes.co.jp/news/2008/02/26/reference/japan-needs-imports-to-keep-itself-fed/#.UprvUb-lf-k |title=Japan needs imports to keep itself fed |work=[[The Japan Times]] |date=26 February 2008 |access-date=1 December 2013 |archive-date=11 November 2016 |archive-url= https://web.archive.org/web/20161111091247/http://www.japantimes.co.jp/news/2008/02/26/reference/japan-needs-imports-to-keep-itself-fed/#.UprvUb-lf-k |url-status=live}}</ref> Japan imports large quantities of wheat and [[soybean]]s.<ref name="Japan - Agriculture" /> Japan is the 5th largest market for the European Union's agricultural exports.<ref name="Agricultural trade in 2012: EU">{{cite web |url= http://ec.europa.eu/agriculture/trade-analysis/map/2013-1_en.pdf |title=Agricultural trade in 2012: A good story to tell in a difficult year? |work=[[European Union]] |date=January 2013 |page=14 |access-date=1 December 2013 |archive-date=4 March 2016 |archive-url= https://web.archive.org/web/20160304235748/http://ec.europa.eu/agriculture/trade-analysis/map/2013-1_en.pdf |url-status=live}}</ref>{{Update inline|date=January 2022}} Over 90% of [[mandarin orange]]s in Japan are grown in Japan.<ref name="Japan needs imports to keep itself fed" /> [[Apple]]s are also grown due to restrictions on apple imports.<ref name="Japan may warm to U.S. apples">{{cite web |author=Wheat, Dan |url= http://www.capitalpress.com/article/20131014/ARTICLE/131019963 |title=Japan may warm to U.S. apples |work=Capital Press |date=14 October 2013 |access-date=1 December 2013 |archive-date=11 November 2016 |archive-url= https://web.archive.org/web/20161111061126/http://www.capitalpress.com/article/20131014/ARTICLE/131019963 |url-status=live}}</ref> ==== Fishery ==== {{Main|Fishing industry in Japan}} [[File:Global fish catch 2004 & 2005.jpg|thumb|left|200px|Global fish catch in Japan]] Japan ranked fourth in the world in 1996 in [[fishing industry by country|tonnage of fish caught]].<ref name="World review of fisheries and aquaculture">{{cite web |url= http://www.fao.org/docrep/w9900e/w9900e02.htm |title=World review of fisheries and aquaculture |work=[[Food and Agriculture Organization]] |access-date=18 January 2014 |archive-date=12 March 2015 |archive-url= https://web.archive.org/web/20150312075816/http://www.fao.org/docrep/w9900e/w9900e02.htm |url-status=live}}</ref> 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.<ref name="Fish capture by country">{{cite news |author=Brown, Felicity |url= https://www.theguardian.com/environment/datablog/2009/sep/02/fish-capture-country |title=Fish capture by country |work=[[The Guardian]] |date=2 September 2003 |access-date=18 January 2014 |archive-date=18 January 2017 |archive-url= https://web.archive.org/web/20170118075757/https://www.theguardian.com/environment/datablog/2009/sep/02/fish-capture-country |url-status=live}}</ref> In 2003, the total aquaculture production was predicted at 1,301,437 tonnes.<ref name="Japan National Aquaculture Sector Overview">{{cite web |url= http://www.fao.org/fishery/countrysector/naso_japan/en |title=Japan |work=[[Food and Agriculture Organization]] |access-date=18 January 2014 |archive-date=21 January 2017 |archive-url= https://web.archive.org/web/20170121134330/http://www.fao.org/fishery/countrysector/naso_japan/en |url-status=live}}</ref> In 2010, Japan's total fisheries production was 4,762,469 fish.<ref name="World fisheries production, by capture and aquaculture, by country (2010)">{{cite web |url=ftp://ftp.fao.org/FI/STAT/summary/a-0a.pdf |title=World fisheries production, by capture and aquaculture, by country (2010) |work=Food and Agriculture Organization |archive-url=https://web.archive.org/web/20170120164556/ftp://ftp.fao.org/FI/STAT/summary/a-0a.pdf |archive-date=2017-01-20 |url-status=dead |access-date=18 January 2014}}</ref> 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 and [[Japanese amberjack]]. Freshwater fishing, including salmon, trout and eel hatcheries and fish farms,<ref name="FRESHWATER FISH CULTURE IN JAPAN">{{cite web |author=Willoughby, Harvey |url= http://www.lib.noaa.gov/retiredsites/japan/aquaculture/proceedings/report1/willoughby2.html |title=Freshwater Fish Culture in Japan |publisher=[[National Oceanic and Atmospheric Administration]] |access-date=20 June 2013 |archive-date=2 February 2014 |archive-url= https://web.archive.org/web/20140202185911/http://www.lib.noaa.gov/retiredsites/japan/aquaculture/proceedings/report1/willoughby2.html |url-status=live}}</ref> 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.<ref name="List of Freshwater Fishes for Japan">{{cite news |last=Butler |first=Rhett Ayers |url= http://fish.mongabay.com/data/Japan.htm |title=List of Freshwater Fishes for Japan |work=[[Mongabay]] |date=8 August 2007 |access-date=20 June 2013 |archive-date=30 May 2013 |archive-url= https://web.archive.org/web/20130530055343/http://fish.mongabay.com/data/Japan.htm |url-status=live}}</ref> Marine and freshwater aquaculture is conducted in all 47 prefectures in Japan.<ref name="Japan National Aquaculture Sector Overview" /> Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch,<ref>{{cite web |url= https://www.cia.gov/the-world-factbook/countries/japan/ |title=The World Factbook |work=[[Central Intelligence Agency]] |access-date=1 February 2014 |archive-date=5 January 2021 |archive-url= https://web.archive.org/web/20210105105736/https://www.cia.gov/the-world-factbook/countries/japan/ |url-status=live}}</ref> prompting some claims that Japan's fishing is leading to depletion in fish stocks such as [[tuna]].<ref name="UN tribunal halts Japanese tuna over-fishing">{{cite web |url= http://www.atimes.com/oceania/AH31Ah01.html |archive-url= https://web.archive.org/web/20000929115651/http://www.atimes.com/oceania/AH31Ah01.html |url-status=unfit |archive-date=29 September 2000 |title=UN tribunal halts Japanese tuna over-fishing |work=[[Asia Times]] |date=31 August 1999 |access-date=1 February 2014}}</ref> Japan has also sparked controversy by supporting quasi-commercial [[whaling in Japan|whaling]].<ref name="Japanese whaling 'science' rapped">{{cite news |author=Black, Richard |url= http://news.bbc.co.uk/2/hi/science/nature/4118990.stm |title=Japanese whaling 'science' rapped |work=[[BBC News]] |date=22 June 2005 |access-date=1 February 2014 |archive-date=3 February 2014 |archive-url= https://web.archive.org/web/20140203094756/http://news.bbc.co.uk/2/hi/science/nature/4118990.stm |url-status=live}}</ref> === Industry === {{Main|Manufacturing in Japan}} 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.<ref name="Japan Country Report" /> The country's manufacturing output is the third highest in the world.<ref>{{Cite web |url= https://data.worldbank.org/indicator/NV.IND.MANF.CD?most_recent_value_desc=true |title=Manufacturing, value added (current US$) {{!}} Data|work=data.worldbank.org|access-date=17 March 2020|archive-date=7 January 2020|archive-url= https://web.archive.org/web/20200107135049/https://data.worldbank.org/indicator/NV.IND.MANF.CD?most_recent_value_desc=true|url-status=live}}</ref> Industry is concentrated in several regions, with the [[Kantō region]] surrounding Tokyo, (the [[Keihin region|Keihin industrial region]]) as well as the [[Kansai region]] surrounding Osaka (the [[Hanshin Industrial Region|Hanshin industrial region]]) and the [[Tōkai region]] surrounding Nagoya (the [[Chūkyō–Tōkai industrial region]]) the main industrial centers.<ref name="NRI Tokai Industry">{{cite web |author=Iwadare, Yoshihiko |date=1 April 2004 |title=Strengthening the Competitiveness of Local Industries: The Case of an Industrial Cluster Formed by Three Tokai Prefecters |url= http://www.nri.co.jp/english/opinion/papers/2004/pdf/np200475.pdf |url-status=dead |archive-url= https://web.archive.org/web/20120507221638/http://www.nri.co.jp/english/opinion/papers/2004/pdf/np200475.pdf |archive-date=7 May 2012 |access-date=16 February 2014 |work=[[Nomura Research Institute]] |page=16}}</ref><ref name="Case study of regional university-industry partnership in practice">{{cite web |author=Kodama, Toshihiro |date=1 July 2002 |title=Case study of regional university-industry partnership in practice |url= http://www.iist.or.jp/wf/magazine/0098/0098_E.html |access-date=16 February 2014 |work=Institute for International Studies and Training |archive-date=30 July 2017 |archive-url= https://web.archive.org/web/20170730235112/http://www.iist.or.jp/wf/magazine/0098/0098_E.html |url-status=live}}</ref><ref name="Evaluating the Impacts of Regional Cluster Policies">{{cite web |author1=Mori, Junichiro |author2=Kajikawa, Yuya |author3=Sakata, Ichiro |date=2010 |title=Evaluating the Impacts of Regional Cluster Policies using Network Analysis |url= http://pari.u-tokyo.ac.jp/policy/paper/IAMOT2010_jmori_cluster.pdf |url-status=dead |archive-url= https://web.archive.org/web/20160303173712/http://pari.u-tokyo.ac.jp/policy/paper/IAMOT2010_jmori_cluster.pdf |archive-date=3 March 2016 |access-date=16 February 2014 |work=International Association for Management of Technology |page=9}}</ref><ref name="Location and Role of Foreign Firms in Regional Innovation Systems in Japan">{{cite web |author=Schlunze, Rolf D. |title=Location and Role of Foreign Firms in Regional Innovation Systems in Japan |url= http://www.ritsumei.ac.jp/acd/re/k-rsc/ras/04_publications/ria_en/6_01.pdf |url-status=dead |archive-url= https://web.archive.org/web/20170329063132/http://www.ritsumei.ac.jp/acd/re/k-rsc/ras/04_publications/ria_en/6_01.pdf |archive-date=29 March 2017 |access-date=16 February 2014 |work=[[Ritsumeikan University]] |page=25}}</ref><ref name="Profile of Osaka/Kansai">{{cite web |title=Profile of Osaka/Kansai |url= http://www.jetro.go.jp/austria/topics/20121112014-topics/Profile.pdf |access-date=16 February 2014 |work=[[Japan External Trade Organization]] Osaka |page=10 |archive-date=5 August 2020 |archive-url= https://web.archive.org/web/20200805092602/https://www.jetro.go.jp/austria/topics/20121112014-topics/Profile.pdf |url-status=live}}</ref><ref name="Japan in the 21st Century">{{cite book |url= https://books.google.com/books?id=IgOTn0gdmPoC&q=Nagoya+industry&pg=PA136 |title=Japan in the 21st Century: Environment, Economy, and Society |publisher=[[University Press of Kentucky]] |author=Karan, Pradyumna |date=2010 |page=416 |isbn=978-0813127637}}</ref> Other industrial centers include the southwestern part of [[Honshū]] and northern [[Shikoku]] around the [[Seto Inland Sea]] (the Setouchi industrial region); and the northern part of [[Kyūshū]] ([[Kitakyūshū]]). In addition, a long narrow belt of industrial centers called the [[Taiheiyō Belt]] is found between Tokyo and [[Fukuoka, Fukuoka|Fukuoka]], established by particular industries, that have developed as mill towns. Japan enjoys high technological development in many fields, including [[Japanese consumer electronics industry|consumer electronics]], [[automobile industry in Japan|automobile manufacturing]], [[semiconductor]] manufacturing, [[optical fiber]]s, [[optoelectronics]], [[optical media]], [[Fax|facsimile]] and [[Photocopying|copy machines]], and fermentation processes in [[fermentation (food)|food]] and [[fermentation (biochemistry)|biochemistry]]. However, many Japanese companies are facing emerging rivals from the United States, South Korea, and Taiwan.<ref name="The era of Japanese consumer electronics giants is dead">{{cite web |author=Cheng, Roger |url= http://news.cnet.com/8301-1001_3-57547921-92/the-era-of-japanese-consumer-electronics-giants-is-dead/ |title=The era of Japanese consumer electronics giants is dead |work=[[CNET]] |date=9 November 2012 |access-date=11 November 2013 |archive-date=17 November 2012 |archive-url= https://web.archive.org/web/20121117190045/http://news.cnet.com/8301-1001_3-57547921-92/the-era-of-japanese-consumer-electronics-giants-is-dead/ |url-status=live}}</ref> ==== Automobile manufacturing ==== {{Main|Manufacturing in Japan}} [[File:2017-03-07_Geneva_Motor_Show_1217.JPG|250px|right|thumb|[[Lexus LS]]. The rapid growth and success of [[Toyota]]'s [[Lexus]] and other Japanese automakers reflects Japan's strength and global dominance in the automobile industry.]] Japan is the [[List of countries by motor vehicle production|third biggest producer of automobiles in the world]].<ref name="2013 PRODUCTION STATISTICS – FIRST 6 MONTHS" /> [[Toyota]] is currently the world's largest car maker, and the Japanese car makers [[Nissan]], [[Honda]], [[Suzuki]], and [[Mazda]] also count for some of the largest car makers in the world.<ref name="Toyota Again World's Largest Auto Maker">{{cite news |url= https://www.wsj.com/news/articles/SB10001424127887323375204578269181060493750 |title=Toyota Again World's Largest Auto Maker |work=[[The Wall Street Journal]] |date=28 January 2013 |access-date=21 November 2013 |archive-date=25 September 2015 |archive-url= https://web.archive.org/web/20150925190715/http://www.wsj.com/news/articles/SB10001424127887323375204578269181060493750 |url-status=live}}</ref><ref name="WORLD MOTOR VEHICLE PRODUCTION OICA correspondents survey">{{cite web |author=Dawson, Chester |url= http://www.oica.net/wp-content/uploads/2013/03/worldpro2012-modification-ranking.pdf |title=World Motor Vehicle Production OICA correspondents survey |work=OICA |date=2012 |access-date=21 November 2013 |archive-date=24 September 2015 |archive-url= https://web.archive.org/web/20150924055518/http://www.oica.net/wp-content/uploads/2013/03/worldpro2012-modification-ranking.pdf |url-status=live}}</ref> By number, Japan is the world's largest exporter of cars as of 2021.<ref>{{Cite news |date=26 January 2023 |title=The US Hasn't Noticed That China-Made Cars Are Taking Over the World |work=Bloomberg.com |url= https://www.bloomberg.com/news/articles/2023-01-26/how-china-is-quietly-dominating-the-global-car-market |access-date=2 February 2023 |archive-date=28 July 2023 |archive-url= https://web.archive.org/web/20230728230544/https://www.bloomberg.com/news/articles/2023-01-26/how-china-is-quietly-dominating-the-global-car-market |url-status=live}}</ref> ===Mining and petroleum exploration=== {{Main|Mining in Japan}} Japan's mining production has been minimal, and Japan has very little mining deposits.<ref name="Japan Mining">{{cite web |url= http://lcweb2.loc.gov/cgi-bin/query/r?frd/cstdy:@field(DOCID+jp0155) |title=Japan Mining |work=[[Library of Congress Country Studies]] |date=January 1994 |access-date=8 December 2013 |archive-date=1 January 2017 |archive-url= https://web.archive.org/web/20170101174019/http://lcweb2.loc.gov/cgi-bin/query/r?frd%2Fcstdy%3A%40field%28DOCID+jp0155%29 |url-status=live}}</ref><ref name="Mining Overview">{{cite web |url= http://www.meti.go.jp/english/statistics/tyo/honpouko/pdf/h2e6007e.pdf |title=Overview |work=[[Ministry of Economy, Trade and Industry]] |date=2005 |access-date=8 December 2013 |archive-date=30 March 2016 |archive-url= https://web.archive.org/web/20160330065817/http://www.meti.go.jp/english/statistics/tyo/honpouko/pdf/h2e6007e.pdf |url-status=live}}</ref> However, massive deposits of rare earths have been found off the coast of Japan.<ref name="Japan's massive rare earth discovery threatens China's supremacy">{{cite web |author=Jamasmie, Cecilia |url= http://www.mining.com/japans-massive-rare-earth-discovery-threatens-chinas-supremacy-89013/ |title=Japan's massive rare earth discovery threatens China's supremacy |work=Mining.com |date=25 March 2013 |access-date=8 December 2013 |archive-date=22 April 2016 |archive-url= https://web.archive.org/web/20160422090948/http://www.mining.com/japans-massive-rare-earth-discovery-threatens-chinas-supremacy-89013/ |url-status=live}}</ref> 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.<ref name="Petroleum Industry in Japan 2013">{{cite web |url= http://www.paj.gr.jp/english/data/paj2013.pdf |title=Petroleum Industry in Japan 2013 |publisher=[[Petroleum Association of Japan]] |date=September 2013 |page=71 |access-date=8 December 2013 |archive-date=3 March 2016 |archive-url= https://web.archive.org/web/20160303171714/http://www.paj.gr.jp/english/data/paj2013.pdf |url-status=dead}}</ref> In 2019, Japan was the 2nd largest world producer of [[iodine]],<ref>{{cite web |url= https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-iodine.pdf |title=USGS Iodine Production Statistics |access-date=29 April 2021 |archive-date=25 June 2021 |archive-url= https://web.archive.org/web/20210625191455/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-iodine.pdf |url-status=live}}</ref> 4th largest worldwide producer of [[bismuth]],<ref>{{cite web |url= https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-bismuth.pdf |title=USGS Bismuth Production Statistics |access-date=29 April 2021 |archive-date=22 October 2022 |archive-url= https://web.archive.org/web/20221022151458/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-bismuth.pdf |url-status=live}}</ref> the world's 9th largest producer of [[sulfur]]<ref>{{cite web |url= https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-sulfur.pdf |title=USGS Sulfur Production Statistics |access-date=29 April 2021 |archive-date=9 October 2022 |archive-url= https://ghostarchive.org/archive/20221009/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-sulfur.pdf |url-status=live}}</ref> and the 10th largest producer of [[gypsum]].<ref>{{cite web |url= https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-gypsum.pdf |title=USGS Gypsum Production Statistics |access-date=29 April 2021 |archive-date=9 October 2022 |archive-url= https://ghostarchive.org/archive/20221009/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-gypsum.pdf |url-status=live}}</ref> === Services === {{Main|Trade and services in Japan}} [[File:Japan Airlines, Boeing 787-9 JA861J NRT (19455285040).jpg|thumb|left|[[Japan Airlines]], though faced with massive debts as of 2010, is considered one of the largest airlines in the world.]] Japan's service sector accounts for 68.7% (2017) of its total economic output.<ref name="Japan Country Report">{{cite web |title=The World Factbook |url= https://www.cia.gov/library/publications/resources/the-world-factbook/fields/214.html |archive-url= https://web.archive.org/web/20190110065235/https://www.cia.gov/library/publications/resources/the-world-factbook/fields/214.html |url-status=dead |archive-date=10 January 2019 |access-date=20 July 2020 |work=Central Intelligence Agency}}</ref> Banking, insurance, real estate, retailing, [[transportation in Japan|transportation]], and telecommunications are all major industries such as [[Mitsubishi UFJ Financial Group|Mitsubishi UFJ]], [[Mizuho Financial Group|Mizuho]], [[Nippon Telegraph & Telephone|NTT]], [[Tokyo Electric Power Company|TEPCO]], [[Nomura Holdings|Nomura]], [[Mitsubishi Estate]], [[Aeon (company)|Aeon]], [[Mitsui Sumitomo Insurance|Mitsui Sumitomo]], [[Softbank]], [[East Japan Railway Company|JR East]], [[Seven & i Holdings]], [[KDDI]] and [[Japan Airlines]] counting as some of the largest companies in the world.<ref name="Fortune Global 500">{{cite news |url= https://money.cnn.com/magazines/fortune/global500/2013/full_list/?iid=G500_sp_full |title=Fortune Global 500 |work=[[CNNMoney]] |access-date=16 November 2013 |archive-date=29 October 2013 |archive-url= https://web.archive.org/web/20131029194938/http://money.cnn.com/magazines/fortune/global500/2013/full_list/?iid=G500_sp_full |url-status=live}}</ref><ref>{{cite news |url= https://www.forbes.com/global2000/list/#page:1_sort:0_direction:asc_search:_filter:All%20industries_filter:Japan_filter:All%20states |title=The World's Biggest Public Companies |work=[[Forbes]] |access-date=16 November 2013 |archive-date=2 October 2019 |archive-url= https://web.archive.org/web/20191002223833/https://www.forbes.com/global2000/list/#page:1_sort:0_direction:asc_search:_filter:All%20industries_filter:Japan_filter:All%20states |url-status=live}}</ref> two of the five [[List of newspapers in the world by circulation|most circulated newspapers in the world]] are [[Japanese newspapers]].<ref name="National Newspapers Total Circulation 2011">{{cite web |url= http://www.ifabc.org/site/assets/media/National-Newspapers_total-circulation_IFABC_17-01-13.xls |title=National Newspapers Total Circulation 2011 |publisher=[[International Federation of Audit Bureaux of Circulations]] |access-date=2 February 2014 |archive-date=25 May 2017 |archive-url= https://web.archive.org/web/20170525161435/http://www.ifabc.org/site/assets/media/National-Newspapers_total-circulation_IFABC_17-01-13.xls |url-status=dead}}</ref> The [[Junichiro Koizumi|Koizumi]] government set [[Japan Post]], one of the country's largest providers of savings and insurance services for privatisation by 2015.<ref name="Japan govt aims to list Japan Post in three years">{{cite news |author=Fujita, Junko |url= https://www.reuters.com/article/us-japanpost-ipo-idUSBRE89P03420121026 |title=Japan govt aims to list Japan Post in three years |work=[[Reuters]] |date=26 October 2013 |access-date=16 November 2013 |archive-date=25 September 2015 |archive-url= https://web.archive.org/web/20150925113905/http://www.reuters.com/article/2012/10/26/us-japanpost-ipo-idUSBRE89P03420121026 |url-status=live}}</ref> The six major ''[[keiretsu]]s'' are the [[Mitsubishi]], [[Sumitomo]], [[Fuyo]], [[Mitsui]], [[Dai-Ichi Kangyo]] and [[Sanwa Group|Sanwa]].<ref>{{cite web |url= http://www.sjsu.edu/faculty/watkins/keiretsu.htm |title=The Keiretsu of Japan |work=San José State University |access-date=9 October 2013 |archive-date=29 July 2016 |archive-url= https://web.archive.org/web/20160729134327/http://www.sjsu.edu/faculty/watkins/keiretsu.htm |url-status=live}}</ref> Japan is home to 251 companies from the [[Forbes Global 2000]] or 12.55% (as of 2013).<ref>{{cite news |author=Rushe, Dominic |url= https://www.theguardian.com/media/2013/apr/17/chinese-banks-forbes-global-2000 |title=Chinese banks top Forbes Global 2000 list of world's biggest companies |work=[[The Guardian]] |access-date=9 October 2013 |archive-date=3 March 2016 |archive-url= https://web.archive.org/web/20160303170226/http://www.theguardian.com/media/2013/apr/17/chinese-banks-forbes-global-2000 |url-status=live}}</ref> ==== Tourism ==== {{Main|Tourism in Japan}} [[File:Himeji_castle_in_may_2015.jpg|thumbnail|right|Himeji Castle, in [[Himeji, Hyōgo|Himeji]], [[Hyōgo Prefecture]], is one of the most visited sights in Japan.]] In 2012, Japan was the fifth most visited country in Asia and the Pacific, with over 8.3 million tourists.<ref name="Tourism Highlights 2013 Edition">{{cite web |url= http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/unwto_highlights13_en_hr.pdf |title=Tourism Highlights 2013 Edition |publisher=[[World Tourism Organization]] |access-date=8 December 2013 |url-status=dead |archive-url= https://web.archive.org/web/20131030101107/http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/unwto_highlights13_en_hr.pdf |archive-date=30 October 2013}}</ref> 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.<ref name="Japan marks new high in tourism">{{cite web |url= http://www.bangkokpost.com/breakingnews/388740/japan-marks-record-high-of-foreign-visitors |title=Japan marks new high in tourism |work=[[Bangkok Post]] |date=9 January 2014 |access-date=9 January 2014}}</ref><ref name="Attracting more tourists to Japan">{{cite web |url= http://www.japantimes.co.jp/opinion/2014/01/06/editorials/attracting-more-tourists-to-japan/ |title=Attracting more tourists to Japan |work=[[The Japan Times]] |date=6 January 2014 |access-date=9 January 2014 |archive-date=3 March 2016 |archive-url= https://web.archive.org/web/20160303221036/http://www.japantimes.co.jp/opinion/2014/01/06/editorials/attracting-more-tourists-to-japan/ |url-status=live}}</ref><ref name="Record 2013 tourism in Japan despite islands spat, nuclear fallout">{{cite news |author=Williams, Carol |url= https://www.latimes.com/world/worldnow/la-fg-wn-japan-tourism-record-20131211,0,6936589.story |title=Record 2013 tourism in Japan despite islands spat, nuclear fallout |work=[[Los Angeles Times]] |date=11 December 2013 |access-date=9 January 2014 |archive-date=9 January 2014 |archive-url= https://web.archive.org/web/20140109140134/http://www.latimes.com/world/worldnow/la-fg-wn-japan-tourism-record-20131211,0,6936589.story |url-status=live}}</ref> The government hopes to attract 40 million visitors a year by the [[2020 Summer Olympics]] in Tokyo.<ref name="Attracting more tourists to Japan" /> Some of the most popular visited places include the [[Shinjuku]], [[Ginza]], [[Shibuya]] and [[Asakusa, Tokyo|Asakusa]] areas in [[Tokyo]], and the cities of [[Osaka]], [[Kobe]] and [[Kyoto]], as well as [[Himeji Castle]].<ref name="Japan's 10 Most Popular Tourist Attractions">{{cite news |author=Schoenberger, Chana R. |url= https://www.forbes.com/2008/07/03/japan-popular-attractions-summit08-forbeslife-cx_cs_0703travel.html |title=Japan's 10 Most Popular Tourist Attractions |work=[[Forbes]] |date=3 July 2008 |access-date=8 December 2013 |archive-date=12 December 2013 |archive-url= https://web.archive.org/web/20131212221836/http://www.forbes.com/2008/07/03/japan-popular-attractions-summit08-forbeslife-cx_cs_0703travel.html |url-status=live}}</ref> [[Hokkaido]] is also a popular winter destination for visitors with several ski resorts and luxury hotels being built there.<ref name="Attracting more tourists to Japan" /><ref name="Boom time for Hokkaido ski resort area">{{cite web |author=Takahara, Kanako |url= http://www.japantimes.co.jp/news/2008/07/08/news/boom-time-for-hokkaido-ski-resort-area/ |title=Boom time for Hokkaido ski resort area |work=[[The Japan Times]] |date=8 July 2008 |access-date=9 January 2014 |archive-date=22 October 2016 |archive-url= https://web.archive.org/web/20161022031639/http://www.japantimes.co.jp/news/2008/07/08/news/boom-time-for-hokkaido-ski-resort-area/ |url-status=live}}</ref> 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 the [[Group of Seven|G7]] despite being the second largest country in the group,<ref>{{Cite web |url= https://data.worldbank.org/indicator/ST.INT.ARVL?end=2014&locations=US-JP-DE-GB-FR-IT-CA&most_recent_value_desc=true&start=1995 |title=International tourism, number of arrivals - United States, Japan, Germany, United Kingdom, France, Italy, Canada {{!}} Data|work=data.worldbank.org|access-date=16 March 2020|archive-date=19 March 2020|archive-url= https://web.archive.org/web/20200319012917/https://data.worldbank.org/indicator/ST.INT.ARVL%3Fend%3D2014%26locations%3DUS-JP-DE-GB-FR-IT-CA%26most_recent_value_desc%3Dtrue%26start%3D1995|url-status=live}}</ref> and as of 2013 was one of the least visited countries in the [[OECD]] on a per capita basis.<ref>{{Cite web |url= https://fivethirtyeight.com/features/the-countries-where-youre-surrounded-by-tourists/ |title=The Countries Where You're Surrounded By Tourists |last=Silver |first=Nate |date=18 August 2014 |work=FiveThirtyEight |access-date=16 March 2020 |archive-date=19 March 2020 |archive-url= https://web.archive.org/web/20200319012916/https://fivethirtyeight.com/features/the-countries-where-youre-surrounded-by-tourists/ |url-status=live}}</ref> 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.<ref>{{cite web |url= https://data.worldbank.org/indicator/ST.INT.RCPT.CD?end=2013&most_recent_value_desc=true&start=1995 |title=International tourism, receipts (current US$) {{!}} Data|work=data.worldbank.org|access-date=17 March 2020|archive-date=31 July 2020|archive-url= https://web.archive.org/web/20200731100254/https://data.worldbank.org/indicator/ST.INT.RCPT.CD?end=2013&most_recent_value_desc=true&start=1995|url-status=live}}</ref><ref>{{cite web |url= https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2013&most_recent_value_desc=true&start=1960 |title=GDP (current US$) {{!}} Data|work=data.worldbank.org|access-date=17 March 2020|archive-date=31 July 2020|archive-url= https://web.archive.org/web/20200731003111/https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2013&most_recent_value_desc=true&start=1960|url-status=live}}</ref> === Infrastructure === {{Main|Energy in Japan|Transport in Japan}} [[File:Series-N700A-F20.jpg|thumb|left|200px|[[Shinkansen N700 Series]]]] In 2018, Japan ranked 5th overall in the World Bank's [[Logistics Performance Index]],<ref>{{Cite web |title=Global Rankings 2018 {{!}} Logistics Performance Index |url= https://lpi.worldbank.org/international/global |access-date=18 March 2020 |work=lpi.worldbank.org |archive-date=2 January 2014 |archive-url= https://web.archive.org/web/20140102112727/https://lpi.worldbank.org/international/global |url-status=live}}</ref> and 2nd in the infrastructure category.<ref>{{Cite web |title=Global Rankings 2018 {{!}} Logistics Performance Index |url= https://lpi.worldbank.org/international/global?sort=asc&order=Infrastructure#datatable |access-date=18 March 2020 |work=lpi.worldbank.org |archive-date=24 December 2020 |archive-url= https://web.archive.org/web/20201224195440/https://lpi.worldbank.org/international/global?sort=asc&order=Infrastructure#datatable |url-status=live}}</ref> In 2005, one half of Japan's energy was produced from petroleum, a fifth from coal, and 14% from natural gas.<ref>[http://www.stat.go.jp/english/data/handbook/c07cont.htm Chapter 7 Energy] {{Webarchive |url= https://web.archive.org/web/20130105175226/http://www.stat.go.jp/english/data/handbook/c07cont.htm|date=5 January 2013}}, Statistical Handbook of Japan 2007</ref> [[Nuclear power in Japan]] made a quarter of electricity production but due to the [[Fukushima Daiichi nuclear disaster]] there has been a large desire to end Japan's nuclear power program.<ref>{{cite news |author=Hiroko Tabuchi |author-link=Hiroko Tabuchi |date=13 July 2011 |title=Japan Premier Wants Shift Away from Nuclear Power |url= https://www.nytimes.com/2011/07/14/world/asia/14japan.html |work=The New York Times |access-date=7 February 2017 |archive-date=6 January 2017 |archive-url= https://web.archive.org/web/20170106075806/http://www.nytimes.com/2011/07/14/world/asia/14japan.html |url-status=live}}</ref><ref>{{cite web |author=Kazuaki Nagata |date=3 January 2012 |title=Fukushima meltdowns set nuclear energy debate on its ear |url= http://www.japantimes.co.jp/text/nn20120103f1.html |work=The Japan Times |access-date=5 October 2013 |archive-date=23 January 2013 |archive-url= https://web.archive.org/web/20130123173421/http://www.japantimes.co.jp/text/nn20120103f1.html |url-status=live}}</ref> In September 2013, Japan closed its last 50 nuclear power plants nationwide, causing the nation to be nuclear free.<ref name="Japan goes nuclear-free indefinitely">{{cite news |date=15 September 2013 |title=Japan goes nuclear-free indefinitely |url= http://www.cbc.ca/news/world/japan-goes-nuclear-free-indefinitely-1.1855153 |access-date=9 November 2013 |work=[[CBC News]] |archive-date=29 October 2013 |archive-url= https://web.archive.org/web/20131029225253/http://www.cbc.ca/news/world/japan-goes-nuclear-free-indefinitely-1.1855153 |url-status=live}}</ref> The country has since then opted to restart a few of its nuclear reactors.<ref>{{Cite web |title=Nuclear reactor restarts in Japan displacing LNG imports in 2019 - Today in Energy - U.S. Energy Information Administration (EIA) |url= https://www.eia.gov/todayinenergy/detail.php?id=38533 |access-date=18 March 2020 |work=www.eia.gov |archive-date=10 March 2020 |archive-url= https://web.archive.org/web/20200310162006/https://www.eia.gov/todayinenergy/detail.php?id=38533 |url-status=live}}</ref> Japan's spendings on roads has been considered large.<ref name="Japan's Road to Deep Deficit Is Paved With Public Works">{{cite news |author=Pollack, Andrew |date=1 March 1997 |title=Japan's Road to Deep Deficit Is Paved with Public Works |url= https://www.nytimes.com/1997/03/01/world/japan-s-road-to-deep-deficit-is-paved-with-public-works.html |access-date=15 November 2013 |work=[[The New York Times]] |archive-date=4 February 2009 |archive-url= https://web.archive.org/web/20090204191732/http://query.nytimes.com/gst/fullpage.html?res=9500E3DC1031F932A35750C0A961958260 |url-status=live}}</ref> The 1.2 million kilometers of paved road are one of the major means of transportation.<ref>[http://www.stat.go.jp/english/data/handbook/c09cont.htm Chapter 9 Transport] {{Webarchive |url= https://web.archive.org/web/20110427071603/http://www.stat.go.jp/english/data/handbook/c09cont.htm|date=27 April 2011}}, Statistical Handbook of Japan</ref> Japan has [[Right- and left-hand traffic|left-hand traffic]].<ref>{{cite web |title=Why Does Japan Drive On The Left? |url= http://www.2pass.co.uk/japan.htm#.UoCkUL-lf-m |access-date=11 November 2013 |work=2pass |archive-date=5 January 2017 |archive-url= https://web.archive.org/web/20170105035737/http://2pass.co.uk/japan.htm#.UoCkUL-lf-m |url-status=live}}</ref> A single network of speed, divided, limited-access toll roads connects major cities and are operated by [[road pricing|toll-collecting enterprises]].<ref>{{cite book |title=All-Japan Road Atlas}}</ref> New and used cars are inexpensive, and the Japanese government has encouraged people to buy [[hybrid vehicle]]s.<ref name="Prius No. 1 in Japan sales as green interest grows">{{cite news |date=8 January 2013 |title=Prius No. 1 in Japan sales as green interest grows |url= http://usatoday30.usatoday.com/money/autos/2010-01-08-prius-tops_N.htm |access-date=9 November 2013 |work=[[USA Today]] |archive-date=9 November 2013 |archive-url= https://web.archive.org/web/20131109182624/http://usatoday30.usatoday.com/money/autos/2010-01-08-prius-tops_N.htm |url-status=live}}</ref> Car ownership fees and fuel levies are used to promote energy-efficiency.<ref name="Prius No. 1 in Japan sales as green interest grows" /> [[Rail transport in Japan|Rail transport]] is a major means of transport in Japan. [[List of railway companies in Japan|Dozens of Japanese railway companies]] compete in regional and local passenger transportation markets; for instance, 6 passenger [[Japan Railways Group|JR]] enterprises, [[Kintetsu Railway]], [[Seibu Railway]], and [[Keio Corporation]].<ref>{{cite web |author=The Association of Japanese Private Railways |script-title=ja:大手民鉄の現況（単体） |url= http://www.mintetsu.or.jp/activity/databook/pdf/10databook_p02-03.pdf |url-status=dead |archive-url= https://web.archive.org/web/20120304150106/http://www.mintetsu.or.jp/activity/databook/pdf/10databook_p02-03.pdf |archive-date=4 March 2012 |access-date=27 November 2010 |language=ja}}</ref> Often, strategies of these enterprises contain [[real estate]] or [[Department stores in Japan|department stores next to stations]], and many major stations have major department stores near them.<ref name="Osaka dept stores locked in scrap for survival">{{cite web |author1=Nagata, Takeshi |author2=Takahasi, Kentaro |date=5 November 2013 |title=Osaka dept stores locked in scrap for survival |url= http://the-japan-news.com/news/article/0000769876 |url-status=dead |archive-url= https://web.archive.org/web/20131112133007/http://the-japan-news.com/news/article/0000769876 |archive-date=12 November 2013 |access-date=12 November 2013 |work=[[Yomiuri Shimbun|The Japan News]] |publisher=[[Yomiuri Shimbun]]}}</ref> The Japanese cities of [[Fukuoka Subway|Fukuoka]], [[Kobe Municipal Subway|Kobe]], [[Kyoto Municipal Transportation Bureau|Kyoto]], [[Nagoya Subway|Nagoya]], [[Osaka Municipal Subway|Osaka]], [[Sapporo Subway|Sapporo]], [[Sendai Subway|Sendai]], [[Tokyo Subway|Tokyo]] and [[Yokohama Subway|Yokohama]] all have [[Rapid transit|subway]] systems. Some 250 high-speed [[Shinkansen]] trains connect major cities.<ref>{{cite web |date=8 January 2011 |title=What is Shinkansen (bullet train)? Most convenient and the fastest train service throughout Japan. |url= http://jprail.com/travel-informations/tips-for-japan-rail-pass/what-is-shinkansen.html |access-date=12 November 2013 |work=JPRail.com |archive-date=28 June 2014 |archive-url= https://web.archive.org/web/20140628165652/http://jprail.com/travel-informations/tips-for-japan-rail-pass/what-is-shinkansen.html |url-status=live}}</ref> All trains are known for punctuality, and a delay of 90 seconds can be considered late for some train services.<ref>{{cite news |author=Onishi, Norimitsu |date=28 April 2005 |title=An obsession with being on time |url= https://www.nytimes.com/2005/04/27/world/asia/27iht-japan.html?_r=0 |access-date=11 November 2013 |work=[[The New York Times]] |archive-date=19 October 2014 |archive-url= https://web.archive.org/web/20141019192347/http://www.nytimes.com/2005/04/27/world/asia/27iht-japan.html?_r=0 |url-status=live}}</ref> There are 98 passenger and 175 total [[list of airports in Japan|airports in Japan]], and flying is a popular way to travel.<ref>{{cite web |author=Aoki, Mizuho |date=7 February 2013 |title=Bubble era's aviation legacy: Too many airports, all ailing |url= http://www.japantimes.co.jp/news/2012/02/07/reference/bubble-eras-aviation-legacy-too-many-airports-all-ailing/ |access-date=11 November 2013 |work=[[The Japan Times]] |archive-date=8 December 2015 |archive-url= https://web.archive.org/web/20151208182020/http://www.japantimes.co.jp/news/2012/02/07/reference/bubble-eras-aviation-legacy-too-many-airports-all-ailing/ |url-status=live}}</ref><ref>{{cite web |author=Mastny, Lisa |date=December 2001 |title=Traveling Light New Paths for International Tourism |url= http://www.worldwatch.org/system/files/EWP159.pdf |url-status=dead |archive-url= https://web.archive.org/web/20180708015751/http://www.worldwatch.org/system/files/EWP159.pdf |archive-date=8 July 2018 |access-date=11 November 2013 |work=Worldwatch Paper}}</ref> The largest domestic airport, [[Haneda Airport|Tokyo International Airport]], is [[World's busiest airports by passenger traffic|Asia's second busiest airport]].<ref>{{cite web |date=8 November 2013 |title=Year to date Passenger Traffic |url= http://www.aci.aero/Data-Centre/Monthly-Traffic-Data/Passenger-Summary/Year-to-date |access-date=11 November 2013 |work=Airports Council International |archive-date=29 January 2017 |archive-url= https://web.archive.org/web/20170129021001/http://www.aci.aero/Data-Centre/Monthly-Traffic-Data/Passenger-Summary/Year-to-date |url-status=live}}</ref> The largest international gateways are [[Narita International Airport]] (Tokyo area), [[Kansai International Airport]] (Osaka/Kobe/Kyoto area), and [[Chūbu Centrair International Airport]] (Nagoya area).<ref name="Narita airport prepares for battle with Asian hubs">{{cite web |date=25 October 2013 |title=Narita airport prepares for battle with Asian hubs |url= http://www.japantimes.co.jp/news/2003/10/25/national/narita-airport-prepares-for-battle-with-asian-hubs/ |access-date=12 November 2013 |work=[[The Japan Times]] |archive-date=11 November 2016 |archive-url= https://web.archive.org/web/20161111062719/http://www.japantimes.co.jp/news/2003/10/25/national/narita-airport-prepares-for-battle-with-asian-hubs/ |url-status=live}}</ref> The largest ports in Japan include [[Nagoya Port]], the [[Port of Yokohama]], the [[Port of Tokyo]] and the [[Port of Kobe]].<ref>{{cite web |title=The JOC Top 50 World Container Ports |url= http://www.joc.com/sites/default/files/u48783/pdf/Top50-container-2012.pdf |access-date=11 November 2013 |work=[[JOC Group Inc.]] |archive-date=3 March 2016 |archive-url= https://web.archive.org/web/20160303171348/http://www.joc.com/sites/default/files/u48783/pdf/Top50-container-2012.pdf |url-status=live}}</ref> About 84% of Japan's energy is imported from other countries.<ref name="Nuclear Power in Japan">{{cite web |date=November 2013 |title=Nuclear Power in Japan |url= http://www.world-nuclear.org/info/Country-Profiles/Countries-G-N/Japan/ |url-status=dead |archive-url= https://web.archive.org/web/20140513222356/http://www.world-nuclear.org/info/Country-Profiles/Countries-G-N/Japan/ |archive-date=13 May 2014 |access-date=15 November 2013 |work=[[World Nuclear Association]]}}</ref><ref name="Japan's Energy Supply Situation and Basic Policy">{{cite web |title=Japan's Energy Supply Situation and Basic Policy |url= http://www.fepc.or.jp/english/energy_electricity/supply_situation/ |access-date=15 November 2013 |work=FEPC |archive-date=11 July 2016 |archive-url= https://web.archive.org/web/20160711052816/http://www.fepc.or.jp/english/energy_electricity/supply_situation/ |url-status=live}}</ref> Japan is the world's largest liquefied natural gas importer, second largest coal importer, and third largest net oil importer.<ref>{{cite web |title=Japan |url= http://www.eia.gov/countries/cab.cfm?fips=JA&trk=p2 |access-date=15 November 2013 |work=[[Energy Information Administration]] |archive-date=3 December 2013 |archive-url= https://web.archive.org/web/20131203012310/http://www.eia.gov/countries/cab.cfm?fips=JA&trk=p2 |url-status=live}}</ref> Given its heavy dependence on imported energy, Japan has aimed to diversify its sources.<ref name="Fukushima Watch: Some Power Companies in Black without Nuclear Restarts">{{cite news |author=Iwata, Mari |date=12 November 2013 |title=Fukushima Watch: Some Power Companies in Black without Nuclear Restarts |url= https://blogs.wsj.com/japanrealtime/2013/11/12/fukushima-watch-some-power-companies-in-black-without-nuclear-restarts/ |access-date=15 November 2013 |work=[[The Wall Street Journal]] |archive-date=13 November 2013 |archive-url= https://web.archive.org/web/20131113143231/http://blogs.wsj.com/japanrealtime/2013/11/12/fukushima-watch-some-power-companies-in-black-without-nuclear-restarts/ |url-status=live}}</ref> 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.<ref>{{cite web |date=1 November 2013 |title=A lesson in energy diversification |url= http://www.japantimes.co.jp/opinion/2013/11/01/editorials/a-lesson-in-energy-diversification/ |access-date=15 November 2013 |work=[[The Japan Times]] |archive-date=11 August 2016 |archive-url= https://web.archive.org/web/20160811130539/http://www.japantimes.co.jp/opinion/2013/11/01/editorials/a-lesson-in-energy-diversification/ |url-status=live}}</ref> 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.<ref>{{Cite news |date=26 September 2019 |title=Japan to invest $10 billion in global LNG infrastructure projects: minister |url= https://www.reuters.com/article/us-japan-lng-conference-meti-idUSKBN1WB050 |access-date=26 September 2019 |work=Reuters |archive-date=26 September 2019 |archive-url= https://web.archive.org/web/20190926083241/https://www.reuters.com/article/us-japan-lng-conference-meti-idUSKBN1WB050 |url-status=live}}</ref> Other important energy source includes coal, and [[Hydroelectricity in Japan|hydroelectricity]] is Japan's biggest renewable energy source.<ref>{{cite news |author1=Tsukimori, Osamu |author2=Kebede, Rebekah |date=15 October 2013 |title=Japan on gas, coal power building spree to fill nuclear void |url= https://www.reuters.com/article/us-japan-power-outlook-idUSBRE99F02A20131016 |access-date=15 November 2013 |work=[[Reuters]] |archive-date=11 February 2016 |archive-url= https://web.archive.org/web/20160211140220/http://www.reuters.com/article/us-japan-power-outlook-idUSBRE99F02A20131016 |url-status=live}}</ref><ref>{{cite web |title=International Energy Statistics |url= http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=2&pid=33&aid=12&cid=regions&syid=2005&eyid=2012&unit=BKWH |access-date=15 November 2013 |work=[[Energy Information Administration]] |archive-date=4 March 2016 |archive-url= https://web.archive.org/web/20160304040512/http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=2&pid=33&aid=12&cid=regions&syid=2005&eyid=2012&unit=BKWH |url-status=live}}</ref> Japan's solar market is also currently booming.<ref name="Kyocera Boosts Solar Sales Goal on Higher Demand in Japan">{{cite news |author=Watanabe, Chisaki |date=31 October 2013 |title=Kyocera Boosts Solar Sales Goal on Higher Demand in Japan |url= https://www.bloomberg.com/news/2013-10-31/kyocera-boosts-solar-sales-goal-on-higher-demand-in-japan.html |access-date=15 November 2013 |work=[[Bloomberg L.P.|Bloomberg]] |archive-date=15 November 2013 |archive-url= https://web.archive.org/web/20131115020350/http://www.bloomberg.com/news/2013-10-31/kyocera-boosts-solar-sales-goal-on-higher-demand-in-japan.html |url-status=live}}</ref> Kerosene is also used extensively for home heating in portable heaters, especially farther north.<ref name="Japan kerosene heater sales surge on power worries">{{cite news |author=Maeda, Risa |date=25 October 2013 |title=Japan kerosene heater sales surge on power worries |url= https://www.reuters.com/article/idUSL3E7LP15220111025 |access-date=15 November 2013 |work=[[Reuters]] |archive-date=10 March 2016 |archive-url= https://web.archive.org/web/20160310120456/http://www.reuters.com/article/idUSL3E7LP15220111025 |url-status=live}}</ref> Many taxi companies run their fleets on liquefied natural gas.<ref>{{cite web |date=11 July 2013 |title=Japan may soon get London-style taxis |url= http://ajw.asahi.com/article/economy/business/AJ201307110082 |access-date=15 November 2013 |work=[[The Asahi Shimbun]] |archive-date=3 December 2013 |archive-url= https://web.archive.org/web/20131203095232/http://ajw.asahi.com/article/economy/business/AJ201307110082 |url-status=live}}</ref> A recent success towards greater [[Fuel economy in automobiles|fuel economy]] was the introduction of mass-produced [[hybrid vehicle]]s.<ref name="Prius No. 1 in Japan sales as green interest grows" /> Prime Minister [[Shinzō Abe]], who was working on Japan's economic revival, signed a treaty with [[Saudi Arabia]] and [[UAE]] about the rising prices of oil, ensuring Japan's stable deliveries from that region.<ref name="Japan, Saudi Arabia agree on security, energy cooperation">{{cite web |author=Suzuki, Takuya |date=1 May 2013 |title=Japan, Saudi Arabia agree on security, energy cooperation |url= http://ajw.asahi.com/article/behind_news/politics/AJ201305010057 |url-status=dead |archive-url= https://web.archive.org/web/20160304002614/http://ajw.asahi.com/article/behind_news/politics/AJ201305010057 |archive-date=4 March 2016 |access-date=15 November 2013 |work=[[The Asahi Shimbun]]}}</ref><ref name="Abe clinches nuclear technology deal with Abu Dhabi">{{cite web |date=3 May 2013 |title=Abe clinches nuclear technology deal with Abu Dhabi |url= http://www.japantimes.co.jp/news/2013/05/03/national/abe-clinches-nuclear-technology-deal-with-abu-dhabi/ |url-status=dead |archive-url= https://web.archive.org/web/20160811130141/http://www.japantimes.co.jp/news/2013/05/03/national/abe-clinches-nuclear-technology-deal-with-abu-dhabi/ |archive-date=11 August 2016 |access-date=15 November 2013 |work=[[The Japan Times]]}}</ref> ==Finance== [[File:The_Tokyo_Stock_Exchange_-_main_room_3.jpg|thumbnail|The main trading room of the [[Tokyo Stock Exchange]], one of the largest stock exchanges in the world]] The [[Tokyo Stock Exchange]] is the [[List of stock exchanges|third largest stock exchange in the world]] by [[market capitalisation]], as well as the 2nd largest stock market in Asia, with 2,292 listed companies.<ref name="NYSE">{{cite web |url= https://www.nyse.com/events/1170156816059.html |title=NYSE Calendar |publisher=[[New York Stock Exchange]] |date=31 January 2007 |access-date=7 February 2014 |archive-url= https://web.archive.org/web/20071011121725/http://www.nyse.com/events/1170156816059.html |archive-date=11 October 2007 |url-status=dead}}</ref><ref name="China becomes world's third largest stock market">{{cite news |url= http://articles.economictimes.indiatimes.com/2010-06-19/news/27598091_1_market-value-trillion-largest-exchange |title=China becomes world's third largest stock market |work=[[The Economic Times]] |date=19 June 2010 |access-date=7 February 2014 |archive-date=1 February 2014 |archive-url= https://web.archive.org/web/20140201014856/http://articles.economictimes.indiatimes.com/2010-06-19/news/27598091_1_market-value-trillion-largest-exchange |url-status=dead}}</ref><ref name="Japan approves merger of Tokyo and Osaka exchanges">{{cite news |url= https://www.bbc.co.uk/news/business-18718093 |title=Japan approves merger of Tokyo and Osaka exchanges |work=[[BBC News]] |date=5 July 2012 |access-date=7 February 2014 |archive-date=19 April 2013 |archive-url= https://archive.today/20130419180054/http://www.bbc.co.uk/news/business-18718093 |url-status=live}}</ref> The [[Nikkei 225]] and the [[TOPIX]] are the two important [[stock market index]]es of the Tokyo Stock Exchange.<ref name="The Nikkei 225 Index Performance">{{cite web |url= http://www.finfacts.com/Private/curency/nikkei225performance.htm |title=The Nikkei 225 Index Performance |work=Finfacts |access-date=7 February 2014 |archive-date=7 May 2016 |archive-url= https://web.archive.org/web/20160507225903/http://www.finfacts.com/Private/curency/nikkei225performance.htm |url-status=live}}</ref><ref name="Tokyo Stock Exchange Tokyo Price Index TOPIX">{{cite news |url= https://www.bloomberg.com/quote/TPX:IND |title=Tokyo Stock Exchange Tokyo Price Index TOPIX |work=[[Bloomberg L.P.|Bloomberg]] |access-date=7 February 2014 |archive-date=9 February 2014 |archive-url= https://web.archive.org/web/20140209195932/http://www.bloomberg.com/quote/TPX:IND |url-status=live}}</ref> The Tokyo Stock Exchange and the [[Osaka Stock Exchange]], another major stock exchange in Japan, merged on 1 January 2013, creating one of the world's largest stock exchanges.<ref name="Japan approves merger of Tokyo and Osaka exchanges" /> Other stock exchanges in Japan include the [[Nagoya Stock Exchange]], [[Fukuoka Stock Exchange]] and [[List of East Asian stock exchanges|Sapporo Securities Exchange]].<ref name="Horizons introduces leveraged and inverse MSCI Japan ETFs">{{cite web |author=Smith, Simon |url= http://www.etfstrategy.co.uk/horizons-introduces-leveraged-and-inverse-msci-japan-etfs-81256/ |title=Horizons introduces leveraged and inverse MSCI Japan ETFs |work=eftstrategy.com |date=22 January 2014 |access-date=7 February 2014 |archive-date=5 January 2017 |archive-url= https://web.archive.org/web/20170105075254/http://www.etfstrategy.co.uk/horizons-introduces-leveraged-and-inverse-msci-japan-etfs-81256/ |url-status=live}}</ref><ref name="About JSCCHistory">{{cite web |url= http://www.jscc.co.jp/en/company/history.html |title=About JSCC History |work=[[Japan Securities Clearing Corporation]] |access-date=7 February 2014 |archive-date=23 April 2016 |archive-url= https://web.archive.org/web/20160423043241/http://www.jscc.co.jp/en/company/history.html |url-status=dead}}</ref> ==Labor force== {{Main|Labor market of Japan}} [[File:Unemployment rate in Japan.svg|thumb|left|450px|Unemployment rate of Japan.<ref name="OECDemp">{{Citation |publisher=OECD |title=OECD Labour Force Statistics 2020 |date=2020 |doi=10.1787/23083387 |isbn=9789264687714 |url= https://www.oecd-ilibrary.org/employment/oecd-labour-force-statistics_23083387}}</ref> Red line is G7 average.<br /> 15-24 age (thin line) is [[youth unemployment]]. ]] 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.<ref>{{cite web |url= http://www.bloomberg.co.jp/apps/news?pid=90003007&sid=a2b9qmzxMAcE&refer=jp_economies |archive-url= https://archive.today/20120721141151/http://www.bloomberg.co.jp/apps/news?pid=90003007&sid=a2b9qmzxMAcE&refer=jp_economies |url-status=dead |archive-date=21 July 2012 |title=雇用情勢は一段と悪化、５月失業率は５年８カ月ぶり高水準(Update3) |publisher=Bloomberg |date=30 June 2009 |access-date=1 February 2013}}</ref><ref name="Japan's Jobless Rate Five-Year High">{{cite news |last=Fujioka |first=Toru |url= https://www.bloomberg.com/apps/news?pid=20601068&sid=a90dAL94wEos |title=Japan's Jobless Rate Rises to Five-Year High of 5.2% (Update2) |publisher=Bloomberg |work=[[Bloomberg News]] |date=29 June 2009 |access-date=1 February 2013}}</ref><ref name="Japan's Unemployment Rate Drops to Six-Year Low">{{cite web |author=Rochan, M |url= http://www.ibtimes.co.uk/japans-unemployment-rate-drops-six-year-low-amid-rising-inflation-1434592 |title=Japan's Unemployment Rate Drops to Six-Year Low Amid Rising Inflation |work=[[International Business Times]] |date=31 January 2014 |access-date=29 April 2014 |archive-date=10 August 2016 |archive-url= https://web.archive.org/web/20160810105831/http://www.ibtimes.co.uk/japans-unemployment-rate-drops-six-year-low-amid-rising-inflation-1434592 |url-status=live}}</ref> In 2008 Japan's labor force consisted of some 66 million workers—40% of whom were women—and was rapidly shrinking.<ref>{{cite web |url= http://www.thenewglobal.com/wp-content/uploads/2013/06/Will-Abenomics-Ensure-Japans-Revival_June-14.pdf |title=Will Abenomics Ensure Japan's Revival? |publisher=The New Global |access-date=19 June 2013 |archive-date=13 March 2016 |archive-url= https://web.archive.org/web/20160313121204/http://thenewglobal.com/wp-content/uploads/2013/06/will-abenomics-ensure-japans-revival_june-14.pdf |url-status=live}}</ref> One major long-term concern for the Japanese labor force is its low birthrate.<ref name="Japan's Biggest Challenge">{{cite news |author=Traphagan, John |url= http://nationalinterest.org/feature/japans-biggest-challenge-its-not-china-plummeting-population-11004 |title=Japan's Biggest Challenge (and It's Not China): A Plummeting Population |work=[[The National Interest]] |date=4 August 2014 |access-date=7 August 2014 |archive-date=6 August 2014 |archive-url= https://web.archive.org/web/20140806015756/http://nationalinterest.org/feature/japans-biggest-challenge-its-not-china-plummeting-population-11004 |url-status=live}}</ref> In 2005, the number of deaths in Japan exceeded the number of births, indicating that the decline in population had already started.<ref>{{cite news |url= http://news.bbc.co.uk/2/hi/asia-pacific/4552010.stm |title=Japan population starts to shrink |date=22 December 2005 |access-date=17 March 2020 |archive-date=30 July 2020 |archive-url= https://web.archive.org/web/20200730224200/http://news.bbc.co.uk/2/hi/asia-pacific/4552010.stm |url-status=live}}</ref> While one countermeasure for a declining birthrate would be to increase [[Immigration to Japan|immigration]], Japan has struggled to attract potential migrants despite immigration laws being relatively lenient (especially for high-skilled workers) compared to other developed countries.<ref>{{cite journal |last=Oishi |first=Nana |date=2012 |title=The Limits of Immigration Policies: The Challenges of Highly Skilled Migration in Japan |journal=American Behavioral Scientist |volume=56 |issue=8 |pages=1080–1100 |doi=10.1177/0002764212441787 |s2cid=154641232}}</ref> 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.<ref>{{Cite web |url= https://asia.nikkei.com/Spotlight/Japan-immigration/Japan-cries-Help-wanted-but-few-foreigners-heed-the-call |title=Japan cries 'Help wanted,' but few foreigners heed the call |work=Nikkei Asian Review |access-date=17 March 2020 |archive-date=6 August 2023 |archive-url= https://web.archive.org/web/20230806190928/https://asia.nikkei.com/Spotlight/Japan-immigration/Japan-cries-Help-wanted-but-few-foreigners-heed-the-call |url-status=live}}</ref> 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.<ref>{{Cite web |url= https://news.gallup.com/poll/211883/number-potential-migrants-worldwide-tops-700-million.aspx |title=Number of Potential Migrants Worldwide Tops 700 Million |date=8 June 2017 |work=Gallup.com |access-date=16 March 2020 |archive-date=2 August 2023 |archive-url= https://web.archive.org/web/20230802194808/https://news.gallup.com/poll/211883/number-potential-migrants-worldwide-tops-700-million.aspx |url-status=live}}</ref><ref>{{cite web |url= https://data.oecd.org/chart/5StJ |title=Interactive charts by the OECD |work=OECD Data |access-date=16 March 2020 |archive-date=27 September 2022 |archive-url= https://web.archive.org/web/20220927134217/https://data.oecd.org/chart/5StJ |url-status=live}}</ref> 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 the [[RENGO|Japanese Trade Union Confederation]]. Labor union membership is about 12 million. As of 2019 Japan's unemployment rate was the lowest in the G7.<ref>{{Cite web |url= https://data.oecd.org/chart/5TCN |title=Interactive charts by the OECD |work=OECD Data |access-date=28 March 2020 |archive-date=27 June 2022 |archive-url= https://web.archive.org/web/20220627103216/https://data.oecd.org/chart/5TCN |url-status=live}}</ref> Its employment rate for the working-age population (15–64) was the highest in the G7.<ref>{{Cite web |url= https://data.oecd.org/chart/5TCM |title=Interactive charts by the OECD |work=OECD Data |access-date=28 March 2020 |archive-date=2 October 2023 |archive-url= https://web.archive.org/web/20231002114643/https://data.oecd.org/chart/5TCM |url-status=live}}</ref> == Law and government == Japan ranks 27th of 185 countries in the [[ease of doing business index]] 2013.<ref name="Economy Rankings">{{cite web |url= http://www.doingbusiness.org/rankings |title=Economy Rankings |work=Doing Business |access-date=25 November 2013 |url-status=dead |archive-url= https://web.archive.org/web/20150206025936/http://www.doingbusiness.org/rankings |archive-date=6 February 2015}}</ref> [[Taxation in Japan|Japan]] has [[List of countries by tax revenue as percentage of GDP|one of the smallest tax rates]] in the developed world.<ref name="oecd2008" /> After deductions, the majority of workers are free from [[personal income tax]]es. [[Consumption tax]] rate is 10%, while [[corporate tax]] rates are high, second highest corporate tax rate in the world, at 36.8%.<ref name="oecd2008" /><ref name="US displacing Japan as No 1 for highest corp taxes">{{cite news |author1=Temple-West, Patrick |author2=Dixon, Kim |url= https://www.reuters.com/article/usa-tax-japan-idUSL2E8EU5VV20120330 |title=US displacing Japan as No 1 for highest corp taxes |work=[[Reuters]] |date=30 March 2012 |access-date=1 February 2014 |archive-date=31 December 2012 |archive-url= https://web.archive.org/web/20121231132906/http://www.reuters.com/article/2012/03/30/usa-tax-japan-idUSL2E8EU5VV20120330 |url-status=live}}</ref><ref name="U.S. corporate tax rate: No. 1 in the world">{{cite news |author=Isidore, Chris |url= https://money.cnn.com/2012/03/27/pf/taxes/corporate-taxes/ |title=U.S. corporate tax rate: No. 1 in the world |work=[[CNNMoney]] |date=27 March 2012 |access-date=1 February 2014 |archive-date=3 February 2014 |archive-url= https://web.archive.org/web/20140203105635/http://money.cnn.com/2012/03/27/pf/taxes/corporate-taxes/ |url-status=live}}</ref> However, the [[House of Representatives (Japan)|House of Representatives]] has passed a bill which increased the consumption tax to 10% in October 2015.<ref name="Lower House passes bills to double consumption tax">{{cite web |url= http://ajw.asahi.com/article/behind_news/AJ201206260065 |title=Update: Lower House passes bills to double consumption tax |work=[[The Asahi Shimbun]] |date=26 June 2012 |access-date=25 November 2013 |url-status=dead |archive-url= https://web.archive.org/web/20130622081457/http://ajw.asahi.com/article/behind_news/AJ201206260065 |archive-date=22 June 2013}}</ref> The government has also decided to reduce corporate tax and to phase out automobile tax.<ref name="Big firms to see tax cut on social expenses">{{cite web |url= http://the-japan-news.com/news/article/0000820137 |title=Big firms to see tax cut on social expenses |work=[[The Japan News]] |date=24 November 2013 |access-date=25 November 2013 |archive-date=25 July 2014 |archive-url= https://web.archive.org/web/20140725090016/http://the-japan-news.com/news/article/0000820137 |url-status=dead}}</ref><ref name="Japan to Phase Out Automobile Tax">{{cite web |url= http://www.nasdaq.com/article/japan-to-phase-out-automobile-tax-20131121-01237 |title=Japan to Phase Out Automobile Tax |work=[[NASDAQ]] |date=21 November 2013 |access-date=25 November 2013 |archive-date=2 December 2013 |archive-url= https://web.archive.org/web/20131202225324/http://www.nasdaq.com/article/japan-to-phase-out-automobile-tax-20131121-01237 |url-status=live}}</ref> In 2016, the [[International Monetary Fund|IMF]] 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).<ref name="Overhyped, underappreciated">{{cite news |url= https://www.economist.com/news/leaders/21702751-what-japans-economic-experiment-can-teach-rest-world-overhyped-underappreciated |title=Overhyped, underappreciated |newspaper=The Economist |issn=0013-0613 |access-date=31 July 2016 |archive-date=31 July 2016 |archive-url= https://web.archive.org/web/20160731051017/http://www.economist.com/news/leaders/21702751-what-japans-economic-experiment-can-teach-rest-world-overhyped-underappreciated |url-status=live}}</ref><ref>{{cite news |url= https://next.ft.com/content/2c1cd964-36bf-11e6-9a05-82a9b15a8ee7 |title=IMF urges Japan to 'reload' Abenomics |work=Financial Times |date=20 June 2016 |access-date=31 July 2016 |archive-date=27 June 2016 |archive-url= https://web.archive.org/web/20160627111117/https://next.ft.com/content/2c1cd964-36bf-11e6-9a05-82a9b15a8ee7 |url-status=live}}</ref><ref>{{cite web |url= http://www.imf.org/external/np/ms/2016/062016.htm |title=Japan: Staff Concluding Statement of the 2016 Article IV Mission |work=www.imf.org |access-date=31 July 2016 |archive-date=25 January 2017 |archive-url= https://web.archive.org/web/20170125032413/http://www.imf.org/external/np/ms/2016/062016.htm |url-status=live}}</ref> [[Shareholder activism]] is rare despite the fact that the corporate law gives shareholders strong powers over managers.<ref name="Shareholder Activism in Japan? Not Yet">{{cite news |author=Pesek, William |url= https://www.bloomberg.com/news/2012-07-02/tough-legs-loins-urged-by-shareholder-activists-william-pesek.html |title=Shareholder Activism in Japan? Not Yet |work=[[Bloomberg L.P.|Bloomberg]] |date=3 July 2012 |access-date=25 November 2013 |archive-date=2 December 2013 |archive-url= https://web.archive.org/web/20131202233107/http://www.bloomberg.com/news/2012-07-02/tough-legs-loins-urged-by-shareholder-activists-william-pesek.html |url-status=live}}</ref> Under Prime Minister [[Shinzō 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.<ref name="Overhyped, underappreciated" /><ref>{{cite news |url= http://www.japantimes.co.jp/news/2015/04/27/reference/new-rules-pushing-japanese-corporations-tap-outside-directors/ |title=New rules are pushing Japanese corporations to tap more outside directors |last=Nagata |first=Kazuaki |date=27 April 2015 |work=The Japan Times Online |issn=0447-5763 |access-date=31 July 2016 |archive-date=17 July 2016 |archive-url= https://web.archive.org/web/20160717012049/http://www.japantimes.co.jp/news/2015/04/27/reference/new-rules-pushing-japanese-corporations-tap-outside-directors/ |url-status=live}}</ref> The government's liabilities include [[List of countries by public debt|the second largest public debt of any nation]] with debt of over one quadrillion yen, or 8,535,340,000,000 in USD.<ref>{{cite web |url= http://www.imf.org/external/pubs/ft/weo/2013/01/weodata/weorept.aspx?sy=2012&ey=2012&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=35&pr1.y=14&c=512%2C666%2C914%2C668%2C612%2C672%2C614%2C946%2C311%2C137%2C213%2C962%2C911%2C674%2C193%2C676%2C122%2C548%2C912%2C556%2C313%2C678%2C419%2C181%2C513%2C867%2C316%2C682%2C913%2C684%2C124%2C273%2C339%2C868%2C638%2C921%2C514%2C948%2C218%2C943%2C963%2C686%2C616%2C688%2C223%2C518%2C516%2C728%2C918%2C558%2C748%2C138%2C618%2C196%2C522%2C278%2C622%2C692%2C156%2C694%2C624%2C142%2C626%2C449%2C628%2C564%2C228%2C283%2C924%2C853%2C233%2C288%2C632%2C293%2C636%2C566%2C634%2C964%2C238%2C182%2C662%2C453%2C960%2C968%2C423%2C922%2C935%2C714%2C128%2C862%2C611%2C135%2C321%2C716%2C243%2C456%2C248%2C722%2C469%2C942%2C253%2C718%2C642%2C724%2C643%2C576%2C939%2C936%2C644%2C961%2C819%2C813%2C172%2C199%2C132%2C733%2C646%2C184%2C648%2C524%2C915%2C361%2C134%2C362%2C652%2C364%2C174%2C732%2C328%2C366%2C258%2C734%2C656%2C144%2C654%2C146%2C336%2C463%2C263%2C528%2C268%2C923%2C532%2C738%2C944%2C578%2C176%2C537%2C534%2C742%2C536%2C866%2C429%2C369%2C433%2C744%2C178%2C186%2C436%2C925%2C136%2C869%2C343%2C746%2C158%2C926%2C439%2C466%2C916%2C112%2C664%2C111%2C826%2C298%2C542%2C927%2C967%2C846%2C443%2C299%2C917%2C582%2C544%2C474%2C941%2C754%2C446%2C698&s=GGXWDN_NGDP%2CGGXWDG_NGDP&grp=0&a= |title=5. Report for Selected Countries and Subjects |work=[[International Monetary Fund]] |access-date=25 November 2013 |archive-date=11 August 2013 |archive-url= https://web.archive.org/web/20130811182105/http://www.imf.org/external/pubs/ft/weo/2013/01/weodata/weorept.aspx?sy=2012&ey=2012&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=35&pr1.y=14&c=512%2C666%2C914%2C668%2C612%2C672%2C614%2C946%2C311%2C137%2C213%2C962%2C911%2C674%2C193%2C676%2C122%2C548%2C912%2C556%2C313%2C678%2C419%2C181%2C513%2C867%2C316%2C682%2C913%2C684%2C124%2C273%2C339%2C868%2C638%2C921%2C514%2C948%2C218%2C943%2C963%2C686%2C616%2C688%2C223%2C518%2C516%2C728%2C918%2C558%2C748%2C138%2C618%2C196%2C522%2C278%2C622%2C692%2C156%2C694%2C624%2C142%2C626%2C449%2C628%2C564%2C228%2C283%2C924%2C853%2C233%2C288%2C632%2C293%2C636%2C566%2C634%2C964%2C238%2C182%2C662%2C453%2C960%2C968%2C423%2C922%2C935%2C714%2C128%2C862%2C611%2C135%2C321%2C716%2C243%2C456%2C248%2C722%2C469%2C942%2C253%2C718%2C642%2C724%2C643%2C576%2C939%2C936%2C644%2C961%2C819%2C813%2C172%2C199%2C132%2C733%2C646%2C184%2C648%2C524%2C915%2C361%2C134%2C362%2C652%2C364%2C174%2C732%2C328%2C366%2C258%2C734%2C656%2C144%2C654%2C146%2C336%2C463%2C263%2C528%2C268%2C923%2C532%2C738%2C944%2C578%2C176%2C537%2C534%2C742%2C536%2C866%2C429%2C369%2C433%2C744%2C178%2C186%2C436%2C925%2C136%2C869%2C343%2C746%2C158%2C926%2C439%2C466%2C916%2C112%2C664%2C111%2C826%2C298%2C542%2C927%2C967%2C846%2C443%2C299%2C917%2C582%2C544%2C474%2C941%2C754%2C446%2C698&s=GGXWDN_NGDP%2CGGXWDG_NGDP&grp=0&a= |url-status=live}}</ref><ref name="Japan's Debt About 3 Times Larger Than ASEAN's GDP">{{cite web |author=Keck, Zachary |url= https://thediplomat.com/2013/08/japans-debt-about-3-times-larger-than-aseans-gdp/ |title=Japan's Debt About 3 Times Larger Than ASEAN's GDP |work=[[The Diplomat (magazine)|The Diplomat]] |date=10 August 2013 |access-date=25 November 2013 |archive-date=3 December 2013 |archive-url= https://web.archive.org/web/20131203014949/http://thediplomat.com/2013/08/japans-debt-about-3-times-larger-than-aseans-gdp/ |url-status=live}}</ref><ref name="Japan Gets to Know a Quadrillion as Debt Hits New High">{{cite web |author=Einhorn, Bruce |url= http://www.businessweek.com/articles/2013-08-09/japan-gets-to-know-a-quadrillion-as-debt-hits-new-high |archive-url= https://web.archive.org/web/20130811064252/http://www.businessweek.com/articles/2013-08-09/japan-gets-to-know-a-quadrillion-as-debt-hits-new-high |url-status=dead |archive-date=11 August 2013 |title=Japan Gets to Know a Quadrillion as Debt Hits New High |work=[[Bloomberg L.P.|Bloomberg]] |date=9 August 2013 |access-date=25 November 2013}}</ref> Former Prime Minister [[Naoto Kan]] has called the situation 'urgent'.<ref>{{cite web |url= http://www.japantoday.com/category/politics/view/kan-warns-of-greece-like-debt-crisis |title=Kan warns of Greece-like debt crisis " Japan Today: Japan News and Discussion |publisher=Japantoday.com |date=11 June 2010 |access-date=1 February 2013 |archive-date=24 September 2012 |archive-url= https://web.archive.org/web/20120924070929/http://www.japantoday.com/category/politics/view/kan-warns-of-greece-like-debt-crisis |url-status=live}}</ref> Japan's central bank has [[List of countries by foreign exchange reserves|the second largest foreign-exchange reserves]] after the People's Republic of China, with over one trillion US Dollars in foreign reserves.<ref name="Japan's forex reserves up">{{cite web |url= http://www.kuna.net.kw/ArticleDetails.aspx?id=2381263&Language=en |title=Japan's forex reserves up for second straight month |work=[[Kuwait News Agency]] |date=6 June 2014 |access-date=3 July 2014 |archive-date=3 March 2016 |archive-url= https://web.archive.org/web/20160303200010/http://www.kuna.net.kw/ArticleDetails.aspx?id=2381263&Language=en |url-status=live}}</ref> ==Culture== {{quote box | width=25em| bgcolor=#B0C4DE |align=left|qalign=left |quote=<div style="text-align:left;">'''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.''<ref>{{cite web |url= https://asia.nikkei.com/Business/Companies/AirAsia-had-talks-with-cash-strapped-HNA-over-asset-purchases |title=AirAsia had talks with cash-strapped HNA over asset purchases |author=Mayuko Tani |date=20 March 2018 |work=Nikkei Asian Review |access-date=4 September 2018 |archive-date=24 July 2018 |archive-url= https://web.archive.org/web/20180724153952/https://asia.nikkei.com/Business/Companies/AirAsia-had-talks-with-cash-strapped-HNA-over-asset-purchases |url-status=live}}</ref></div> |}} ===Overview=== {{lang|ja-Latn|[[Nemawashi]]}} ({{lang|ja|根回し}}), 'consensus building', in Japanese culture is an informal process of quietly laying 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 successful ''nemawashi'' enables changes to be carried out with the consent of all sides. Japanese companies are known for management methods such as "[[The Toyota Way]]". {{lang|ja-Latn|[[Kaizen]]}} ([[wikt:改善|改善]], Japanese for 'improvement') is a Japanese philosophy that focuses on continuous improvement throughout all aspects of life. When applied to the workplace, {{lang|ja-Latn|kaizen}} activities continually improve all functions of a business, from manufacturing to management and from the CEO to the assembly line workers.<ref>{{Cite book |last=Imai |first=Masaaki |title=Kaizen: The Key to Japan's Competitive Success |location=New York, NY |publisher=Random House |date=1986}}</ref> By improving standardised activities and processes, Kaizen aims to eliminate waste (see [[Lean manufacturing]]). {{lang|ja-Latn|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.<ref>Europe Japan Centre, Kaizen Strategies for Improving Team Performance, Ed. Michael Colenso, London: Pearson Education Limited, 2000</ref> The corporate application of the {{lang|ja-Latn|kaizen}} 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.<ref>{{Cite web |url= https://data.oecd.org/chart/5Stk |title=Interactive charts by the OECD |work=OECD Data |access-date=16 March 2020}}</ref> Some companies have powerful enterprise unions and {{lang|ja-Latn|[[shuntō]]}}. The [[nenko system|{{lang|ja-Latn|nocat=y|nenko}} system]] or {{lang|ja-Latn|nenko joretsu}} as it is called in Japan, is the Japanese system of preferring to promote employees close to [[retirement]]. This is done to prioritise experience in executive positions and to allow older employees to achieve a higher salary level before retirement. The {{lang|ja-Latn|nenko}} 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. {{Nihongo|[[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 the [[Japanese work environment]].<ref name="oecd2008">[http://www.oecd.org/document/17/0,3343,en_2649_34111_40353553_1_1_1_1,00.html OECD: Economic survey of Japan 2008] {{webarchive |url= https://web.archive.org/web/20101109122744/http://www.oecd.org/document/17/0,3343,en_2649_34111_40353553_1_1_1_1,00.html |date=9 November 2010}}</ref><ref>{{cite news |url= http://www.economist.com/displayStory.cfm?story_id=7193984 |title=Japan's Economy: Free at last |newspaper=The Economist |date=20 July 2006 |access-date=29 March 2007 |archive-date=10 March 2010 |archive-url= https://web.archive.org/web/20100310215303/http://www.economist.com/displayStory.cfm?story_id=7193984 |url-status=live}}</ref> These practices have become less common in recent years.<ref>{{cite news |url= http://www.economist.com/specialreports/displayStory.cfm?story_id=10169956 |title=Going hybrid |newspaper=The Economist |access-date=3 March 2015 |archive-date=16 January 2010 |archive-url= https://web.archive.org/web/20100116011541/http://www.economist.com/specialreports/displaystory.cfm?story_id=10169956 |url-status=live}}</ref> {{Nihongo|[[Salaryman]]|サラリーマン|''Sararīman''|salaried man}} refers to someone whose income is [[salary]]-based; particularly those working for corporations. [[Wasei eigo|Coined in Japan]], the word's frequent use by Japanese corporations and its prevalence in Japanese [[manga]] and [[anime]] has led to its adoption into and common usage within the English language to refer to Japanese [[white-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]], and {{lang|ja-Latn|[[karōshi]]}}. The term ''salaryman'' refers almost exclusively to males.{{Citation needed|date=May 2021}} An [[office lady]], often abbreviated OL (Japanese: {{lang|ja|オーエル}} {{lang|ja-Latn|Ōeru}}), is a female [[office worker]] in Japan who performs generally [[pink collar]] tasks such as serving tea and doing [[Secretary|secretarial]] or [[Clerk (position)|clerical]] work. Like many unmarried Japanese, OLs often [[Parasite single|live with their parents]] well into [[early adulthood]]. Office ladies are usually [[Full-time job|full-time]] permanent staff, with little opportunity for [[Promotion (rank)|promotion]], and there is often a tacit expectation that they leave their jobs if they get married.{{Citation needed|date=May 2021}} {{Nihongo|[[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.<ref>{{Cite book |last=Meyer-Ohle |first=Hendrik |title=Japanese workplaces in transition: employee perceptions |date=2009 |publisher=Palgrave Macmillan |isbn=978-0-230-27424-2 |location=Basingstoke New York |pages=131}}</ref> They may also be described as ''[[underemployment|underemployed]]'' or [[freelance]] workers. These people do not start a [[career]] after [[Secondary education in Japan|high school]] or [[List of universities in Japan|university]] but instead usually live as [[parasite single]]s 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|date=May 2021}} {{Nihongo|[[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.<ref>{{Cite journal |last1=Asgari |first1=Behrooz |last2=Pickar |first2=Peter |last3=Garay |first3=Victoria |date=2016 |title=Karoshi and Karou-jisatsu in Japan: causes, statistics and prevention mechanisms |url= http://apbersociety.org/Asia_Pacific_Business_and_Economics_Research_Society/Journal_files/AsGarPick.pdf |journal=Asia Pacific Business & Economics Perspectives |volume=4 |issue=2 |pages=49–72 |access-date=23 October 2021 |archive-date=30 November 2021 |archive-url= https://web.archive.org/web/20211130002929/http://apbersociety.org/Asia_Pacific_Business_and_Economics_Research_Society/Journal_files/AsGarPick.pdf |url-status=live}}</ref> {{Nihongo|[[Sōkaiya]]|総会屋|sōkaiya}}, (sometimes also translated as 'corporate bouncers', 'meeting-men', or 'corporate blackmailers') are a form of specialised [[racketeer]] unique to Japan, and often associated with the [[yakuza]], who extort money from or blackmail companies by threatening to publicly [[Humiliation|humiliate]] companies and their management, usually in their {{Nihongo|annual meeting|総会|sōkai}}. {{Nihongo|[[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 a {{lang|ja-Latn|sarakin}}. 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 biggest ''sarakin'' are publicly traded and often allied with [[List of banks in Japan|big banks]].<ref name="economist">[http://www.economist.com/finance/displaystory.cfm?story_id=11413090 Lenders of first resort] {{Webarchive |url= https://web.archive.org/web/20080803200610/http://www.economist.com/finance/displaystory.cfm?story_id=11413090 |date=3 August 2008}}, ''The Economist'', 22 May 2008</ref> The first "Western-style" [[department stores in Japan|department store in Japan]] (called {{lang|ja|デパート}}, {{lang|ja-Latn|depāto}}) was [[Mitsukoshi]], founded in 1904, which has its root as a [[kimono]] 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 in [[Ginza]] allowed street shoes to be worn indoors, something innovative at the time.<ref>{{cite web |url= http://www.matsuzakaya.co.jp/corporate/history/honshi/index.shtml |title=松坂屋「ひと・こと・もの」語り |publisher=Matsuzakaya.co.jp |access-date=1 February 2013 |archive-date=12 May 2016 |archive-url= https://web.archive.org/web/20160512182545/http://www.matsuzakaya.co.jp/corporate/history/honshi/index.shtml |url-status=live}}</ref> 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' [[Terminal train station|terminuses]]. [[Seibu Department Stores|Seibu]] and [[Hankyu Department Stores|Hankyu]] 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 include [[Foreign exchange market|foreign exchange]], travel reservations, and ticket sales for local concerts and other events.{{Citation needed|date=May 2021}} == ''Keiretsu'' == {{Main|Keiretsu}} A {{Nihongo|''[[keiretsu]]''|系列|extra='system' or 'series'}} is a set of companies with interlocking business relationships and shareholdings. A ''keiretsu'' unequivocally exists as an identical form of business structure to the [[Affiliate (commerce)|''affiliate'']], or an associate.{{Citation needed|date=February 2023}} It is a type of [[business group]]. The prototypical {{lang|ja-Latn|keiretsu}} appeared in Japan during the "[[Japanese post-war economic miracle|economic miracle]]" following World War II. Before Japan's surrender, Japanese industry was controlled by large family-controlled [[Vertical monopoly|vertical monopolies]] called {{lang|ja-Latn|[[zaibatsu]]}}. The [[Allies of World War II|Allies]] dismantled the {{lang|ja-Latn|zaibatsu}} in the late 1940s, but the companies formed from the dismantling of the {{lang|ja-Latn|zaibatsu}} were reintegrated. The dispersed corporations were re-interlinked through share purchases to form horizontally integrated alliances across many industries. Where possible, {{lang|ja-Latn|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.<ref>[https://www.nytimes.com/1954/07/17/archives/japan-again-plans-huge-corporations.html?sq=ogasawara&scp=46&st=p "Japan Again Plans Huge Corporations"] {{Webarchive |url= https://web.archive.org/web/20180723034507/https://www.nytimes.com/1954/07/17/archives/japan-again-plans-huge-corporations.html?sq=ogasawara&scp=46&st=p |date=23 July 2018}}. ''The New York Times''. 17 July 1954.</ref> The major {{lang|ja-Latn|keiretsu}} were each centered on one bank, which lent money to the {{lang|ja-Latn|keiretsu}}'s member companies and held equity positions in the companies. Each central bank had great control over the companies in the ''keiretsu'' and acted as a monitoring entity and as an emergency bail-out entity. One effect of this structure was to minimise the presence of [[hostile takeover]]s in Japan, because no entities could challenge the power of the banks.{{Citation needed|date=May 2021}} There are two types of {{lang|ja-Latn|keiretsu}}: vertical and horizontal. Vertical ''keiretsu'' illustrates the organisation and relationships within a company (for example all factors of production of a certain product are connected), while a horizontal ''keiretsu'' shows relationships between entities and industries, normally centered on a bank and trading company. Both are complexly woven together and sustain each other.<ref>{{cite journal |last1=Tomeczek |first1=Artur |title=The evolution of Japanese keiretsu networks: A review and text network analysis of their perceptions in economics |journal=Japan and the World Economy |date=June 2022 |volume=62 |doi=10.1016/j.japwor.2022.101132 |s2cid=247298887 |url= https://www.sciencedirect.com/science/article/pii/S0922142522000184 |access-date=1 December 2023|url-access=subscription }}</ref> The Japanese recession in the 1990s had profound effects on the {{lang|ja-Latn|keiretsu}}. 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 the ''keiretsu'': [[Sumitomo Bank]] and [[Mitsui]] Bank, for instance, became [[Sumitomo Mitsui Banking Corporation]] in 2001, while [[Sanwa Bank]] (the banker for the Hankyu-Toho Group) became part of Bank of Tokyo-Mitsubishi UFJ, now known as [[MUFG Bank]]. Additionally, many companies from outside the keiretsu system, such as [[Sony]], began outperforming their counterparts within the system.{{Citation needed|date=May 2021}} Generally, these causes gave rise to a strong notion in the business community that the old {{lang|ja-Latn|keiretsu}} system was not an effective business model, and led to an overall loosening of {{lang|ja-Latn|keiretsu}} alliances. While the {{lang|ja-Latn|keiretsu}} still exist, they are not as centralised or integrated as they were before the 1990s. This, in turn, has led to a growing [[corporate acquisition]] industry in Japan, as companies are no longer able to be easily "bailed out" by their banks, as well as rising [[derivative litigation]] by more independent shareholders.{{Citation needed|date=May 2021}} == Mergers and acquisitions == Japanese companies have been involved in 50,759 deals between 1985 and 2018. This cumulates to a total value of US$2.636 billion which translates to ¥281.469 trillion.<ref>{{Cite news |url= https://imaa-institute.org/m-and-a-statistics-countries/ |title=M&A Statistics by Countries - Institute for Mergers, Acquisitions and Alliances (IMAA) |work=Institute for Mergers, Acquisitions and Alliances (IMAA) |access-date=26 February 2018 |archive-date=27 November 2020 |archive-url= https://web.archive.org/web/20201127222829/https://imaa-institute.org/m-and-a-statistics-countries/ |url-status=live}}</ref> In 1999, there was an all-time high in terms of value of deals with almost US$220 billion. The most active year so far was 2017 with over 3,150 deals, but only a total value of US$114 billion (see graph "M&A in Japan by number and value").{{Citation needed|date=May 2021}} Here is a list of the most important deals (ranked by value in US$ [billion]) in Japanese history:{{Citation needed|date=May 2021}} {| class="wikitable" ! Date announced ! Acquiror name ! Acquiror mid industry ! Acquiror state ! Target name ! Target mid industry ! Target state ! Value of transaction ($mil) |- |13 October 1999 |Sumitomo Bank Ltd |Banks |Japan |Sakura Bank Ltd |Banks |Japan |45,494.36 |- |18 February 2005 |Mitsubishi Tokyo Financial Grp |Banks |Japan |UFJ Holdings Inc |Banks |Japan |41,431.03 |- |20 August 1999 |Fuji Bank Ltd |Banks |Japan |Dai-Ichi Kangyo Bank Ltd |Banks |Japan |40,096.63 |- |27 March 1995 |Mitsubishi Bank Ltd |Banks |Japan |Bank of Tokyo Ltd |Banks |Japan |33,787.73 |- |18 July 2016 |SoftBank Group Corp |Wireless |Japan |ARM Holdings PLC |Semiconductors |United Kingdom |31,879.49 |- |20 August 1999 |Fuji Bank Ltd |Banks |Japan |Industrial Bank of Japan Ltd |Banks |Japan |30,759.61 |- |24 August 2004 |Sumitomo Mitsui Finl Grp Inc |Banks |Japan |UFJ Holdings Inc |Banks |Japan |29,261.48 |- |28 August 1989 |Mitsui Taiyo Kobe Bank Ltd |Banks |Japan |Taiyo Kobe Bank Ltd |Banks |Japan |23,016.80 |- |15 October 2012 |SoftBank Corp |Wireless |Japan |Sprint Nextel Corp |Telecommunications Services |United States |21,640.00 |- |20 September 2017 |KK Pangea |Other Financials |Japan |Toshiba Memory Corp |Semiconductors |Japan |17,930.00 |} Among the top 50 deals by value, 92% of the time the acquiring nation is Japan. Foreign direct investment is playing a much smaller role than national M&A in Japan. == Other economic indicators == {{Update|type=|date=February 2019|reason=the indicators are 10 years old and unsupported by citation as well}} [[File:Current Account Balance 2006.png|thumb|250px|Current account balance (2006)<ref>[http://www.imf.org/external/pubs/ft/weo/2008/01/weodata/weorept.aspx?pr.x=90&pr.y=11&sy=2006&ey=2008&scsm=1&ssd=1&sort=country&ds=.&br=1&c=512%2C446%2C914%2C666%2C612%2C668%2C614%2C672%2C311%2C946%2C213%2C137%2C911%2C962%2C193%2C674%2C122%2C676%2C912%2C548%2C313%2C556%2C419%2C678%2C513%2C181%2C316%2C682%2C913%2C684%2C124%2C273%2C339%2C921%2C638%2C948%2C514%2C943%2C218%2C686%2C963%2C688%2C616%2C518%2C223%2C728%2C516%2C558%2C918%2C138%2C748%2C196%2C618%2C278%2C522%2C692%2C622%2C694%2C156%2C142%2C624%2C449%2C626%2C564%2C628%2C283%2C228%2C853%2C924%2C288%2C233%2C293%2C632%2C566%2C636%2C964%2C634%2C182%2C238%2C453%2C662%2C968%2C960%2C922%2C423%2C714%2C935%2C862%2C128%2C716%2C611%2C456%2C321%2C722%2C243%2C942%2C248%2C718%2C469%2C724%2C253%2C576%2C642%2C936%2C643%2C961%2C939%2C813%2C644%2C199%2C819%2C184%2C172%2C524%2C132%2C361%2C646%2C362%2C648%2C364%2C915%2C732%2C134%2C366%2C652%2C734%2C174%2C144%2C328%2C146%2C258%2C463%2C656%2C528%2C654%2C923%2C336%2C738%2C263%2C578%2C268%2C537%2C532%2C742%2C944%2C866%2C176%2C369%2C534%2C744%2C536%2C186%2C429%2C925%2C178%2C746%2C436%2C926%2C136%2C466%2C343%2C112%2C158%2C111%2C439%2C298%2C916%2C927%2C664%2C846%2C826%2C299%2C542%2C582%2C443%2C474%2C917%2C754%2C544%2C698%2C941&s=BCA&grp=0&a= Current account balance, U.S. dollars, Billions] from [[IMF]] World Economic Outlook Database, April 2008</ref>]] '''[[Net international investment position]]:''' 266,223 / billion<ref>{{cite web |url= http://www.mof.go.jp/english/international_policy/reference/iip/index.htm |title=International Investment Position of Japan (End of 2009) |publisher=Ministry of Finance, Japan |access-date=8 May 2011 |archive-date=11 July 2016 |archive-url= https://web.archive.org/web/20160711082137/http://www.mof.go.jp/english/international_policy/reference/iip/index.htm |url-status=live}}</ref> (1st)<ref>{{cite news |url= http://www.nikkei.com/news/headline/article/g=96958A9C93819488E0EAE2E6E68DE2E0E2E7E0E2E3E399E3E3E4E2E2;df=2 |title=「日本売り」なぜ起きない 円安阻むからくりに迫る |work=Nihon Keizai Shimbun |date=8 May 2011 |access-date=8 May 2011 |archive-date=9 November 2011 |archive-url= https://web.archive.org/web/20111109171612/http://www.nikkei.com/news/headline/article/g=96958A9C93819488E0EAE2E6E68DE2E0E2E7E0E2E3E399E3E3E4E2E2;df=2 |url-status=live}}</ref> '''Industrial production growth rate:''' 7.5% (2010 est.) '''Investment (gross fixed):''' 20.3% of GDP (2010 est.) '''Household income or consumption by percentage share:''' * ''Lowest 10%:'' 4.8% * ''Highest 10%:'' 21.7% (1993) '''Agriculture products:''' rice, sugar beets, vegetables, fruit, pork, poultry, dairy products, eggs, fish '''Export commodities:''' machinery and equipment, motor vehicles, semiconductors, chemicals<ref>{{Cite web |title=Japanese Business Briefs |url= https://bizpages.org/countries--JP--Japan |access-date=13 April 2021 |archive-date=13 April 2021 |archive-url= https://web.archive.org/web/20210413041318/https://bizpages.org/countries--JP--Japan |url-status=live}}</ref> '''Import commodities:''' machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials (2001) '''[[Exchange rates]]:'''<br /> ''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 – consumption:'' 925.5 billion [[kWh]] (2008) * ''Electricity – production:'' 957.9 billion kWh (2008 est.) * ''Electricity – exports:'' 0 kWh (2008) * ''Electricity – imports:'' 0 kWh (2008) '''Electricity production by source:''' * ''Fossil Fuel:'' 69.7% * ''Hydro:'' 7.3% * ''Nuclear:'' 22.5% * ''Other:'' 0.5% (2008) '''Electricity standards:''' * 100 [[volts]] at 50 Hz from the [[Ōi River]] (in [[Shizuoka Prefecture|Shizuoka]]) Northward; * 100 [[volts]] at 60 Hz Southward '''Oil:''' * ''production:'' {{convert|132700|oilbbl/d|abbr=on}} (2009) ([[List of countries by oil production|46th]]) * ''consumption:'' {{convert|4363000|oilbbl/d|abbr=on}} (2009) ([[List of countries by oil consumption|3rd]]) * ''exports:'' {{convert|380900|oilbbl/d}} (2008) ([[List of countries by oil exports|64th]]) * ''imports:'' {{convert|5033000|oilbbl/d}} (2008) ([[List of countries by oil imports|2nd]]) * ''net imports:'' {{convert|4620000|oilbbl/d}} (2008 est.) * ''proved reserves:'' {{convert|44120000|oilbbl|abbr=on}} (1 January 2010 est.) == See also == * [[Economic history of Japan]] * [[Economic relations of Japan]] * [[List of exports of Japan]] * [[List of countries by leading trade partners]] * [[List of the largest trading partners of Japan]] * [[List of largest Japanese companies]] * [[Japan External Trade Organization]] * [[Tokugawa coinage]] * [[Tourism in Japan]] * [[Japanese post-war economic miracle]] * [[Japanese asset price bubble]] * [[Machine orders]], an [[economic indicator]] specific to the Japanese economy * [[Quantitative easing]] * [[Loans in Japan]] * [[Unemployment insurance in Japan]] * [[Welfare in Japan]] ==Notes== {{Reflist|25em}} ==External links== {{Commons category|Economy of Japan}} <!-- {{No more links}} Please be cautious adding more external links. Wikipedia is not a collection of links and should not be used for advertising. Excessive or inappropriate links will be removed. See [[Wikipedia:External links]] and [[Wikipedia:Spam]] for details. If there are already suitable links, propose additions or replacements on the article's talk page, or submit your link to the relevant category at the Open Directory Project (dmoz.org) and link there using {{Dmoz}}. --> * {{Britannica|2221313}} * [https://www.boj.or.jp/en/index.htm/ Bank of Japan] {{Webarchive |url= https://web.archive.org/web/20200602072650/https://www.boj.or.jp/en/index.htm/ |date=2 June 2020}} * [http://www.mof.go.jp/english/ Minister of Finance (Japan)] {{Webarchive |url= https://web.archive.org/web/20110518071808/http://www.mof.go.jp/english/ |date=18 May 2011}} * [http://www5.cao.go.jp/keizai3/getsurei-e/index-e.html Cabinet Office Monthly Economic Report and Main Economic Indicators] {{Webarchive |url= https://web.archive.org/web/20161005001447/http://www5.cao.go.jp/keizai3/getsurei-e/index-e.html |date=5 October 2016}} * [http://www.worldbank.org/en/country/japan Japan profile] {{Webarchive |url= https://web.archive.org/web/20170916095054/http://www.worldbank.org/en/country/japan |date=16 September 2017}} at [[The World Bank]] * [http://www.oecd.org/japan/ Japan - OECD] {{Webarchive |url= https://web.archive.org/web/20140805125259/http://www.oecd.org/japan/ |date=5 August 2014}} * [https://japantrade.org/ Japan Trade Organization] {{Webarchive |url= https://web.archive.org/web/20200730220937/https://japantrade.org/ |date=30 July 2020}} {{Economy of Japan}} {{Navboxes|list1= {{Japan topics}} {{APEC}} {{Organisation for Economic Co-operation and Development}} {{World Trade Organization}} {{Asia topic|Economy of}} }} {{Authority control}} {{DEFAULTSORT:Economy Of Japan}} [[Category:Economy of Japan| ]] [[Category:OECD member economies|Japan]] [[Category:World Trade Organization member economies|Japan]]
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Template:Webarchive
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