The Economy Of Japan

The Japanese economy, the world's second largest developed economy, is also the third largest in the
world in terms of nominal GDP. The country is one of the world’s most innovative economies having the
largest electronic goods industry and patent filings. Japan is also the world’s biggest creditor with the
leading public debt ratio.

Export:
Japan exports goods worth an estimated 728 billion $ and the country’s main exports are motor vehicles,
auto parts, power generating machinery, iron and steel products, semiconductors, and plastic materials.
Japan is the third largest automobile manufacturing country, and they form the leading export goods for
.the country

 Major Export Partners:

The major export destinations for Japan are the United States, accounting for 20% of all exports;
China, accounting for 17.55% of all exports; South Korea, accounting for 7.1% of all exports; Hong
.Kong, accounting for 5.6% of all exports; and Thailand, accounting for 4.5% of all exports

:Main Imports
Japan spends an estimated $632 billion on imports of goods such as petroleum, liquefied natural gas, coal,
audio and visual apparatus, semiconductors, and clothing. Japan is the third-largest importer of
.agricultural products and liquefied natural gas, and the largest importer of coal

 Main import partners :

Japan imports its products from China, which accounts for 24.8% of all imports; the United States,
accounting for 10% of all imports; Australia, accounting for 5.4% of all imports; and South Korea,
.accounting for 4.1% of all imports

:Challenges to the Economy

Japan’s economy has experienced numerous problems such as bad debts which have led to a slow and
unsteady growth rate and inadequate natural resources due to the unfavorable mountainous terrain thus
the need to rely on imported agricultural produce for local consumption. The Japanese population is
mainly made up of old people due to a low birth rate, therefore, raising concerns about the future of
.Japan’s workforce
:Gross domestic product (GDP)
The Gross Domestic Product (GDP) in Japan was worth 4970.92 billion US dollars in 2018. The
GDP value of Japan represents 8.02 percent of the world economy. GDP in Japan averaged
2742.67 USD Billion from 1960 until 2018, reaching an all time high of 6203.21 USD Billion in
2012 and a record low of 44.31 USD Billion in 1960.

I
n
f
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a
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i
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: n rate
Inflation can mean either an increase in the money supply or an increase in price levels. When we hear
about inflation, we are hearing about a rise in prices compared to some benchmark. The inflation in
.Japan calculated based on the consumer price index (CPI) computed since 1946

 Japan inflation rate for 2018 was 0.98%, a  0.51% increase from 2017.

 Japan inflation rate for 2017 was 0.47%, a  0.58% increase from 2016.
 Japan inflation rate for 2016 was -0.12%, a  0.91% decline from 2015.
 Japan inflation rate for 2015 was 0.79%, a  1.97% decline from 2014.

Budget:
Japan recorded a government budget deficit equal to 3.08 Percent of the country Gross Domestic
Product in 2018. Government budget in Japan averaged -2.89 percent of GDP in 1961 and a record low
of -8.30 percent of GDP in 2011 .

Labor force participation rate:

Japan labor force participation rate increased to 62.3 percent in August 2019 , compared with 62.1
percent in the previous month . Japan's labor force participation rate is updated monthly , available from
January 1968 to August 2019 , with average rate 62.6 percent.

 Why is there a labor shortage in Japan ?

Japan has been pressed to make the change because of a critical labor shortage that results from
rapidly aging society and low birth rate . Japan population is expected to decline from about 127
million to 88 million by 2065 , according to the National Institution of population and social
security .

 What is the unemployment rate in japan ?

2.4 percent
Japan unemployment rate stood at 2.4 percent in May , unchanged from the previous month , as
the labor market remained at its tightest in decades . In last reports , Japan's population reached
126.4 million people in December 2018. Unemployment rate of japan remained the same at 2.2
percent in August 2019 .

Future Plans :
Since Japan’s economy depends heavily on human labor, the government intends to lift barriers
on foreign immigrants so as to counter the effects of the declining population . The lifetime
employment traditions are being eliminated to help the economy cope with the increasing
completion from other world economies as well as to increase the chances of employment for
younger and skilled individuals.