Economy - overview:
In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop an advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change.Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis.For three decades, overall real economic growth had been impressive - 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 aftereffects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector.Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo ABE’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. In 2015, ABE revised his “Three arrows” to: growth in nominal GDP to 600 trillion yen, support for child-rearing, and a stable social security system. ABE’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan successfully restarted two nuclear reactors at the Sendai Nuclear Power Plant in Kagoshima prefecture. Japan joined the Trans-Pacific Partnership (TPP) negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses.Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2015 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM ABE in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

GDP (purchasing power parity):
$4.658 trillion (2015 est.) $4.631 trillion (2014 est.) $4.613 trillion (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 5
[see also: GDP country ranks ]

GDP (official exchange rate):
$4.127 trillion (2015 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
0.6% (2015 est.) 1.6% (2014 est.) 0.8% (2013 est.)
country comparison to the world: 191
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$38,200 (2015 est.) $36,400 (2014 est.) $36,200 (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 42
[see also: GDP - per capita country ranks ]

Gross national saving:
24.8% of GDP (2015 est.) 22.4% of GDP (2014 est.) 22% of GDP (2013 est.)
country comparison to the world: 51
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 59.6%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 20.4%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 21.2%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: -0.3%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 18.5%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -19.4% (2015 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 1.2%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 26.6%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 72.2% (2015 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
vegetables, rice, fish, poultry, fruit, dairy products, pork, beef, flowers, potatoes/taros/yams, sugar cane, tea, legumes, wheat and barley

Industries:
among world's largest and most technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods

Industrial production growth rate:
0.7% (2015 est.)
country comparison to the world: 155
[see also: Industrial production growth rate country ranks ]

Labor force:
64.32 million (2015 est.)
country comparison to the world: 9
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 2.9%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 26.2%
[see also: Labor force - by occupation - industry country ranks ]
services: 70.9% (February 2015 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
3.3% (2015 est.) 3.6% (2014 est.)
country comparison to the world: 28
[see also: Unemployment rate country ranks ]

Population below poverty line:
16.1% (2013 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 2.7%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 24.8% (2008)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
37.9 (2011) 24.9 (1993)
country comparison to the world: 74
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $1.439 trillion
[see also: Budget revenues country ranks ]
expenditures: $1.705 trillion (2015 est.)
[see also: Budget expenditures country ranks ]

Taxes and other revenues:
35% of GDP (2015 est.)
country comparison to the world: 61
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-6.5% of GDP (2015 est.)
country comparison to the world: 189
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
227.9% of GDP (2015 est.) 226% of GDP (2014 est.)
country comparison to the world: 1
[see also: Public debt country ranks ]

Fiscal year:
1 April - 31 March

Inflation rate (consumer prices):
0.7% (2015 est.) 2.7% (2014 est.)
country comparison to the world: 62
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0.3% (31 December 2014) 0.3% (31 December 2013)
country comparison to the world: 131
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
1.48% (31 December 2015 est.) 1.48% (31 December 2014 est.)
country comparison to the world: 183
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$4.902 trillion (31 December 2015 est.) $4.896 trillion (31 December 2014 est.)
country comparison to the world: 3
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$8.073 trillion (31 December 2014 est.) $8.035 trillion (31 December 2013 est.)
country comparison to the world: 4
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$10.81 trillion (31 December 2015 est.) $10.9 trillion (31 December 2014 est.)
country comparison to the world: 4
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$4.782 trillion (31 December 2014 est.) $4.584 trillion (31 December 2013) $3.715 trillion (31 December 2012 est.)
country comparison to the world: 4
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$124.3 billion (2015 est.) $24.4 billion (2014 est.)
country comparison to the world: 4
[see also: Current account balance country ranks ]

Exports:
$624 billion (2015 est.) $699.5 billion (2014 est.)
country comparison to the world: 5
[see also: Exports country ranks ]

Exports - commodities:
motor vehicles 14.9%; iron and steel products 5.4%; semiconductors 5%; auto parts 4.8%; power generating machinery 3.5%; plastic materials 3.3% (2014 est.)

Exports - partners:
US 20%, China 17%, South Korea 7%, Taiwan 6%, Hong Kong 6%, Thailand 5% (2015)

Imports:
$625.4 billion (2015 est.) $798.6 billion (2014 est.)
country comparison to the world: 5
[see also: Imports country ranks ]

Imports - commodities:
petroleum 16.1%; liquid natural gas 9.1%; clothing 3.8%; semiconductors 3.3%; coal 2.4%; audio and visual apparatus 1.4% (2014 est.)

Imports - partners:
China 25%, US 10%, Australia 5%, South Korea 4%, Saudi Arabia 4%, UAE 4%, Taiwan 4% (2014)

Reserves of foreign exchange and gold:
$1.261 trillion (31 December 2014 est.) $1.267 trillion (31 December 2014 est.)
country comparison to the world: 2
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$5.18 trillion (31 December 2013 est.) $4.026 trillion (31 December 2012)
country comparison to the world: 6
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$217.4 billion (31 December 2015 est.) $193.5 billion (31 December 2014 est.)
country comparison to the world: 28
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$1.313 trillion (31 December 2015 est.) $1.193 trillion (31 December 2014 est.)
country comparison to the world: 8
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
yen (JPY) per US dollar - 122.1 (2015 est.) 105.86 (2014 est.) 97.44 (2013 est.) 79.79 (2012 est.) 79.81 (2011 est.)