Economic Overview

Japan is the 3rd largest economy in the world. With GDP 1.5 the size of the UK and per capita GDP 6 times that of China, Japan remains the high-tech powerhouse economy of Asia. With the second highest spending worldwide on R&D, a hunger for IP and new trends, and an increasingly globalised outlook, Japanese companies remain amongst the most valuable and technologically advanced in the world. Japan’s major growth driver is exports despite external demand accounting for 16% of its total GDP.

UK Trade and Investment, Japan, 2016

According to the OECD, economic growth is projected to reach 1.0% in 2017 before slowing to 0.8% in 2018, boosting headline inflation to 1¼ % by the end of 2018. With three supplementary budgets in 2016, fiscal consolidation is pausing, helping Japan to cope with the impact of the yen appreciation. Private consumption is projected to continue rising in the context of labour shortages and the historically high level of corporate profits. Faster growthis critical to stopping and reversing the run-up in public debt, which is projected to reach 240 % of GDP by 2018.

OECD, Japan – Economic Forecast Summary November, 2016

Table of contents

  • Key Indicators
  • Economic Indicators
  • Domestic Economic Environment
  • EU-Japan Trade Statistics
  • R&D Expenditures
  • Forecasts
  • Annual Report
  • Further Reading