Economy - overview:
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

GDP (purchasing power parity):
$5.405 trillion (2017 est.) $5.325 trillion (2016 est.) $5.27 trillion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 5

GDP (official exchange rate):
$4.884 trillion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
1.5% (2017 est.) 1% (2016 est.) 1.1% (2015 est.)
country comparison to the world: 174
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$42,700 (2017 est.) $41,900 (2016 est.) $41,500 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 41

Gross national saving:
27% of GDP (2017 est.) 27.2% of GDP (2016 est.) 27% of GDP (2015 est.)
country comparison to the world: 41
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 55.9%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 19.5%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 23.5%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.2%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 17.8%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -16.8% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 1%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 29.7%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 69.3% (2017 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, sugarcane, 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:
1.4% (2017 est.)
country comparison to the world: 155
[see also: Industrial production growth rate country ranks ]

Labor force:
67.77 million (2017 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:
2.9% (2017 est.) 3.1% (2016 est.)
country comparison to the world: 33
[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)

Distribution of family income - Gini index:
37.9 (2011) 24.9 (1993)
country comparison to the world: 73
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $1.678 trillion
[see also: Budget - revenues country ranks ]
expenditures: $1.902 trillion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
34.3% of GDP (2017 est.)
country comparison to the world: 58
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-4.6% of GDP (2017 est.)
country comparison to the world: 152
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
223.8% of GDP (2017 est.) 222.2% of GDP (2016 est.)
country comparison to the world: 1
[see also: Public debt country ranks ]

Fiscal year:
1 April - 31 March

Inflation rate (consumer prices):
0.4% (2017 est.) -0.1% (2016 est.)
country comparison to the world: 19
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0.3% (31 December 2015) 0.3% (31 December 2014)
country comparison to the world: 134
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
1.5% (31 December 2017 est.) 1.48% (31 December 2016 est.)
country comparison to the world: 185
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$6.426 trillion (31 December 2017 est.) $5.651 trillion (31 December 2016 est.)
country comparison to the world: 3
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$8.917 trillion (31 December 2017 est.) $8.023 trillion (31 December 2016 est.)
country comparison to the world: 4
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$13.63 trillion (31 December 2017 est.) $12.11 trillion (31 December 2016 est.)
country comparison to the world: 4
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$4.895 trillion (31 December 2015 est.) $4.378 trillion (31 December 2014 est.) $4.543 trillion (31 December 2013 est.)
country comparison to the world: 4
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$175 billion (2017 est.) $188.1 billion (2016 est.)
country comparison to the world: 3
[see also: Current account balance country ranks ]

Exports:
$683.3 billion (2017 est.) $634.9 billion (2016 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 20.2%, China 17.7%, South Korea 7.2%, Hong Kong 5.2%, Thailand 4.3% (2016)

Imports:
$625.7 billion (2017 est.) $583.5 billion (2016 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 25.8%, US 11.4%, Australia 5%, South Korea 4.1% (2016)

Reserves of foreign exchange and gold:
$1.217 trillion (31 December 2016 est.) $1.233 trillion (31 December 2015 est.)
country comparison to the world: 2
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$3.24 trillion (31 March 2016 est.) $2.83 trillion (31 March 2015 est.)
country comparison to the world: 8
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$268.4 billion (31 December 2017 est.) $238.4 billion (31 December 2016 est.)
country comparison to the world: 23
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$1.548 trillion (31 December 2017 est.) $1.363 trillion (31 December 2016 est.)
country comparison to the world: 8
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
yen (JPY) per US dollar - 111.1 (2017 est.) 108.76 (2016 est.) 108.76 (2015 est.) 121.02 (2014 est.) 97.44 (2013 est.)