Japan:
Economy

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Other pages in this profile of Japan:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan advance with extraordinary rapidity to the rank of second most technologically powerful economy in the world after the US and the third-largest economy in the world after the US and China, measured on a purchasing power parity (PPP) basis. One notable characteristic of the economy has been how manufacturers, suppliers, and distributors have worked together in closely-knit groups called keiretsu. A second basic feature has been the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features have now eroded. Japan's industrial sector is heavily dependent on imported raw materials and fuels. The tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self sufficient in rice, Japan must import about 55% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of overinvestment and an asset price bubble during the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. From 2000 to 2001, government efforts to revive economic growth proved short lived and were hampered by the slowing of the US, European, and Asian economies. In 2002-07, growth improved and the lingering fears of deflation in prices and economic activity lessened, leading the central bank to raise interest rates to 0.25% in July 2006, up from the near 0% rate of the six years prior, and to 0.50% in February 2007. In addition, the 10-year privatization of Japan Post, which has functioned not only as the national postal delivery system but also, through its banking and insurance facilities as Japan's largest financial institution, was completed in October 2007, marking a major milestone in the process of structural reform. Nevertheless, Japan's huge government debt, which totals 182% of GDP, and the aging of the population are two major long-run problems. Some fear that a rise in taxes could endanger the current economic recovery. Debate also continues on the role of and effects of reform in restructuring the economy, particularly with respect to increasing income disparities.
GDP (purchasing power parity)	Definition - World rank and map $4.29 trillion (2007 est.)
GDP (official exchange rate)	Definition $4.384 trillion (2007 est.)
GDP - real growth rate	Definition - World rank and map 2.1% (2007 est.)
GDP - per capita	Definition - World rank and map $33,600 (2007 est.)
GDP - composition by sector	Definition agriculture: 1.4% industry: 26.5% services: 72% (2007 est.)
Labor force	Definition 66.69 million (2007 est.)
Labor force - by occupation	Definition agriculture: 4.6% industry: 27.8% services: 67.7% (2004)
Unemployment rate	Definition - World rank and map 3.9% (2007 est.)
Population below poverty line	Definition NA%
Household income or consumption by percentage share	Definition lowest 10%: 4.8% highest 10%: 21.7% (1993)
Distribution of family income - Gini index	Definition - World rank and map 38.1 (2002)
Inflation rate (consumer prices)	Definition - World rank and map 0% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 23.8% of GDP (2007 est.)
Budget	Definition revenues: $1.448 trillion expenditures: $1.597 trillion (2007 est.)
Public debt	Definition - World rank and map 195.5% of GDP (2007 est.)
Agriculture - products	Definition rice, sugar beets, vegetables, fruit; pork, poultry, dairy products, eggs; fish
Industries	Definition among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods
Industrial production growth rate	Definition - World rank and map 1.3% (2007 est.)
Electricity - production	Definition - World rank and map 1.025 trillion kWh (2005)
Electricity - consumption	Definition - World rank and map 974.2 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 7,653.5 kWh (2005)
Electricity - exports	Definition 0 kWh (2005)
Electricity - imports	Definition 0 kWh (2005)
Oil - production	Definition - World rank and map 125,000 bbl/day (2006)
Oil - consumption	Definition - World rank and map 5.353 million bbl/day (2005)
Oil - consumption per 1,000 people	Definition - World rank and map 42.1 bbl/day (2005)
Oil - exports	Definition - World rank and map 94,830 bbl/day (2004)
Oil - imports	Definition - World rank and map 5.425 million bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 58.5 million bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 4.85 billion cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 83.67 billion cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 657 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 77.6 billion cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 38.02 billion cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map $212.8 billion (2007 est.)
Exports	Definition - World rank and map $676.9 billion f.o.b. (2007 est.)
Exports - commodities	Definition transport equipment, motor vehicles, semiconductors, electrical machinery, chemicals
Exports - partners	Definition US 20.4%, China 15.3%, South Korea 7.6%, Taiwan 6.3%, Hong Kong 5.4% (2006)
Imports	Definition - World rank and map $572.4 billion f.o.b. (2007 est.)
Imports - commodities	Definition machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials
Imports - partners	Definition China 20.5%, US 11.6%, Saudi Arabia 5.7%, UAE 5.2%, Australia 5%, South Korea 4.4%, Indonesia 4.2% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $954.1 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $1.492 trillion (30 June 2007)
Stock of direct foreign investment - at home	Definition $109 billion (2007 est.)
Stock of direct foreign investment - abroad	Definition $527.8 billion (2007 est.)
Market value of publicly traded shares	Definition $4.737 trillion (2005)
Economic aid - donor	Definition ODA, $11.19 billion (2006)
Currency (code)	Definition yen (JPY)
Exchange rates	Definition yen per US dollar - 117.99 (2007), 116.18 (2006), 110.22 (2005), 108.19 (2004), 115.93 (2003)
Fiscal year	Definition 1 April - 31 March

Japan: Economy

Japan:
Economy