Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline
After a 2.4% growth rate in 2005, the GDP has been growing at a slightly lower rate: +2.2% in 2006, +2.3% in 2007. A slowdown at 1.9% is forecasted for 2008, according to FMI.
With current account in surplus, trade sustains the economic growth. Imports benefit from the appreciation of the Yen. Exports benefit from the good business environment in the United States and in Asia, and more precisely in China. Household consumption contributes also to the economic dynamic, improved by an increase of the wages.
The general government balance has a huge deficit, and the level of the general government gross debt is quite significant, representing respectively 3,7% and 184% of the GDP. For these reason, the government has announced a restriction of the budgetary and monetary policy.
Unemployment has decreased since 2003 and today it reaches nearly 4.0% of the active population.
| GDP Indicators | 2004 | 2005 | 2006 | 2007 | 2008 |
| GDP (billions USD) | 4,608.14 | 4,557.10 | 4,366.46 | 4,345.95e | 4,552.20e |
| GDP (constant prices, annual % change) | 2.7 | 1.9 | 2.2 | 2.0e | 1.7e |
| GDP per capita (USD) | 36,075.92 | 35,671.50 | 34,180.72e | 34,022.91e | 35,650.85e |
| General government balance (in % of GDP) | -6.2 | -4.8 | -4.1e | -3.9e | -3.8e |
| Inflation rate (%) | 0.0 | -0.3 | 0.3 | 0.0e | 0.5e |
| Unemployment rate (% of the labor force) | 4.7 | 4.4 | 4.1 | 4.0 | 4.0 |
| Current Account (billions USD) | 172.07 | 165.69 | 170.44 | 195.90e | 195.15e |
| Current Account (in % of GDP) | 3.7 | 3.6 | 3.9 | 4.5e | 4.3e |
Source: IMF - World Economic Outlook Database
Note: (e) Estimated data
| Socio-demographic indicators | 2006 | 2007 | 2008 |
| Unemployment rate (%) | 4.1 | 4.0 | 4.0 |
Source:
Japan has few natural resources, but deposits of gold, magnesium, coal, and silver meet Japan’s current industrial demands. Fishery is also a very important economic activity. Only 15% of Japan's land is suitable for cultivation. Tea and rice are the two main crops. The agricultural economy is highly subsidized and protected. Agriculture contributes only 1.3% to the GDP and employs 7% of the active population.
The industrial sector is well diversified. Japanese firms produce basic products (steel, paper), as well as most advanced technological goods. Japan is also the world’s second producer of cars and ships. The industrial sector contributes nearly 30% to the GDP. Some sectors such as automobiles, robotics, and micro-technology are very competitive.
The service sector accounts for nearly 68% of the GDP.
| Breakdown of economic activity by sector | Agriculture | Industry | Services |
| Value added (annual % change) | -2.2 | 2.9 | 2.2 |
| Value added (in % of GDP) | 1.7 | 30.2 | 68.1 |
| Employment by sector (in % of total employment) | 4.4 | 27.9 | 66.4 |
Source: World Bank - World Development Indicators - last available data.
| Monetary indicators | 2002 | 2003 | 2004 | 2005 | 2006 |
| Average annual exchange rate for 1 USD | 125.39 | 115.93 | 108.19 | 110.22 | 116.30 |
Source: World Bank - World Development Indicators
Foreign trade is an essential element of the Japanese economy. On the 1st January 2007, Japan was the 5th largest exporter in the world and the 6th largest importer in the world.
The Japanese market has progressively opened up to international exchanges since the Uruguay Round of 1994, under pressure exerted by the different members of the WTO. Nevertheless, the World Trade Organization recommends a further liberalization of exchanges, especially as concerns the agricultural sector. Paradoxically, Japanese commercial policy associates some of the lowest Customs duties in the world and extensive non-tariff barriers.
| Foreign trade indicators | 2002 | 2003 | 2004 | 2005 | 2006 |
| Imports of goods (millions USD) | 301,752 | 342,723 | 406,866 | 473,614 | 534,510 |
| Exports of goods (millions USD) | 395,581 | 449,119 | 538,999 | 567,572 | 615,813 |
| Imports of services (millions USD) | 107,940 | 111,528 | 135,514 | 134,256 | 135,556 |
| Exports of services (millions USD) | 65,712 | 77,621 | 97,611 | 110,210 | 117,298 |
| Imports of goods and services (annual % change) | 0.9 | 3.9 | 8.5 | n.c. | n.c. |
| Exports of goods and services (annual % change) | 7.6 | 9.0 | 13.9 | n.c. | n.c. |
| Imports of goods and services (in % of GDP) | 10.1 | 10.4 | 11.4 | n.c. | n.c. |
| Exports of goods and services (in % of GDP) | 11.4 | 12.0 | 13.4 | n.c. | n.c. |
| Trade Balance (millions USD) | 93,829 | 106,396 | 132,134 | 93,958 | 81,303 |
| Trade Balance (including service) (millions USD) | 51,601 | 72,488 | 94,231 | 69,912 | 63,046 |
| Current Account (millions USD) | 112,447 | 136,216 | 172,059 | 165,783 | 170,517 |
| Current Account (in % of GDP) | 2.9 | 3.2 | 3.8 | 3.7 | 3.9 |
| Foreign trade (in % of GDP) | 21.5 | 22.4 | 24.8 | n.c. | n.c. |
Source: World Bank - World Development Indicators
| Main customers (% of exports) |
2006 |
| United States | 22.8% |
| China | 14.3% |
| South Korea | 7.8% |
| Hong Kong | 5.6% |
| Main suppliers (% of imports) |
2006 |
| China | 20.5% |
| United States | 12.0% |
| Saudi Arabia | 6.4% |
| United Arab Emirates | 5.5% |
| Australia | 4.8% |
Source: 2006
| Main exports (% of exports) |
2006 |
| Vehicles other than railway or tramway | 21.9% |
| Electrical machinery and equipment | 19.8% |
| Machinery and mechanical appliances | 19.5% |
| Photographic, cinematographic, measuring and medical instruments | 5.5% |
| Main imports (% of imports) |
2006 |
| Mineral fuels, mineral oils | 27.9% |
| Electrical machinery and equipment | 11.7% |
| Machinery and mechanical appliances | 9.4% |
| Photographic, cinematographic, measuring and medical instruments | 4.0% |
| Ores, slag and ash | 3.6% |
Source: 2006
© Export Entreprises SA, All rights reserved.
If you believe an article violates your rights or the rights of others, please contact us.