Economy of Japan.....

The economy of Japan is a highly developed free-market economy. It is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity (PPP) and is the world's second largest developed economy.....

 

Japan is a member of the G7 and G20. According to the International Monetary Fund, the country's per capita GDP (PPP) was at $41,637 (2020).Due to a volatile currency exchange rate, Japan's GDP as measured in dollars fluctuates sharply. 

 

Accounting for these fluctuations through the use of the Atlas method, Japan is estimated to have a GDP per capita of around $39,048. The Japanese economy is forecast by the Quarterly Tankan survey of business sentiment conducted by the Bank of Japan. The Nikkei 225 presents the monthly report of top blue chip equities on Japan Exchange Group, which is the world's third-largest stock exchange by market capitalization. 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 $1.3 trillion. It ranks 29th on Ease of doing business index and 5th on Global Competitiveness Report. It ranks first in the world in the Economic Complexity Index. Japan is also the world's third-largest consumer market.

Japan is the world's third largest automobile manufacturing country, has the largest electronics goods industry, and is often ranked among the world's most innovative countries leading several measures of global patent filings. Facing increasing competition from China and South Korea, manufacturing in Japan today now focuses primarily on high-tech and precision goods, such as optical instruments, hybrid vehicles, and robotics. Besides the Kantō region, the Kansai region is one of the leading industrial clusters and manufacturing centers for the Japanese economy.

 

The size and industrial structure of cities in Japan have maintained tight regularities despite substantial churning of population and industries across cities overtime. Japan is the world's largest creditor nation. Japan generally runs an annual trade surplus and has a considerable net international investment surplus. As of 2010, Japan possesses 13.7% of the world's private financial assets (Third largest in the world) at an estimated of $15.2trillion. As of 2017, 51 of the Fortune Global 500 companies are based in Japan, down from 62 in 2013. The country is the third largest in the world by total wealth.

Japan's asset price bubble collapse in 1991 led to a period of economic stagnation known as the "lost decade", sometimes now extended as the "lost 20 years." From 1995 to 2007, GDP fell from $5.33 trillion to $4.36 trillion in nominal terms. Japan today has the highest ratio of public debt to GDP of any developed nation, with national debt at 236% relative to GDP as of 2017. This debt is predominantly owned by Japanese nationals. The Japanese economy faces considerable challenges posed by an ageing and declining population, which peaked at 128 million in 2010 and has fallen to 125.9 million as of 2020. Projections suggest the population will continue to fall to potentially lower than 100 million by the end of the 21st century.