The Economy of Japan is a highly developed/advanced social market economy, often referred to as an East Asian model. It is the 4th-largest economy in the world by nominal GDP behind the United States, China, and Germany and the 4th-largest by purchasing power parity (PPP). According to the IMF, the country's per capita GDP (PPP) was at $54,184 (2024). The Nikkei 225 presents the monthly report of top blue chip equities on the Japan Exchange Group, which is the world's fifth-largest stock exchange by market capitalisation. In 2018, Japan was the world's fourth-largest importer and the fourth-largest exporter. It has the world's second-largest foreign-exchange reserves, worth $1.4 trillion. It ranks 5th on the Global Competitiveness Report. It ranks first in the world in the Economic Complexity Index. Japan is also the world's fourth-largest consumer market. Among OECD members, Japan has a highly efficient and strong social security system, which comprises roughly 23.5% of GDP. Japan is the world's largest creditor nation. Japan generally runs an annual trade surplus and has a considerable net international investment surplus. Japan has the third-largest financial assets in the world, valued at $12 trillion, or 8.6% of the global GDP total as of 2020. As of 2022, 47 of the Fortune Global 500 companies are based in Japan. The country is the third-largest in the world by total wealth. It spends around 3.30% of GDP on advance research and development across various sectors of the economy. Japan also had the world's second-largest economy by nominal GDP behind the United States. In 2010, it was surpassed by China. Japan is the world's 7th largest high-technology exporter. It ranks 3rd in the world by number of patent applications.
Top Sectors in Japan
Agriculture in Japan
The Japanese agricultural sector accounts for about 1.1% (2017) of the total country's GDP. Only 12% of Japan's land is suitable for cultivation. Due to this lack of arable land, a system of terraces is used to farm in small areas. 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 km² (14 million acres) cultivated.
Industry in Japan
Japanese manufacturing and industry are very diversified, with a variety of advanced industries that are highly successful. Industry accounts for 30.1% (2017) of the nation's GDP. The country's manufacturing output is the third highest in the world. Japan enjoys high technological development in many fields, including consumer electronics, automobile manufacturing, semiconductor manufacturing, optical fibers, optoelectronics, optical media, facsimile and copy machines, and fermentation processes in food and biochemistry. However, many Japanese companies are facing emerging rivals from the United States, South Korea, and China.
Automobile Manufacturing in Japan
Japan is the third biggest producer of automobiles in the world. Toyota is currently the world's largest car maker, and the Japanese car makers Nissan, Honda, Suzuki, and Mazda are also among the largest car makers globally. By number, Japan is the world's largest exporter of cars as of 2021.
Mining and Petroleum Exploration in Japan
Japan's mining production has been minimal, and the country has very few mining deposits. However, massive deposits of rare earths have been found off the coast of Japan. In 2019, Japan was the 2nd largest world producer of iodine, 4th largest worldwide producer of bismuth, the world's 9th largest producer of sulfur, and the 10th largest producer of gypsum.
Tourism in Japan
In 2012, Japan was the fifth most visited country in Asia and the Pacific, with over 8.3 million tourists. In 2013, due to the weaker yen and easier visa requirements for southwest Asian countries, Japan received a record 11.25 million visitors, surpassing the government's projected goal of 10 million visitors. Some of the most popular places include the Shinjuku, Ginza, Shibuya, and Asakusa areas in Tokyo, and the cities of Osaka, Kobe, and Kyoto, as well as Himeji Castle. Hokkaido is also a popular winter destination with several ski resorts and luxury hotels. Japan's economy is less dependent on international tourism compared to other G7 countries and OECD countries in general.
20 Nov 2024
18 Dec 2024
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