Economy - overview:
Government-industry cooperation, a strong work ethic, mastery of
high technology, and a comparatively small defense allocation (1% of
GDP) helped Japan advance with extraordinary rapidity to the rank of
second-most-technologically-powerful economy in the world after the
US and third-largest economy after the US and China. One notable
characteristic of the economy is the working together of
manufacturers, suppliers, and distributors in closely-knit groups
called keiretsu. A second basic feature has been the guarantee of
lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding. Industry, the most important
sector of the economy, is heavily dependent on imported raw
materials and fuels. The much smaller agricultural sector is highly
subsidized and protected, with crop yields among the highest in the
world. Usually self-sufficient in rice, Japan must import about 50%
of its requirements of other grain and fodder crops. Japan maintains
one of the world's largest fishing fleets and accounts for nearly
15% of the global catch. For three decades overall real economic
growth had been spectacular: 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 overinvestment during the late 1980s and
contractionary domestic policies intended to wring speculative
excesses from the stock and real estate markets. Government efforts
to revive economic growth have met with little success and were
further hampered in 2000-2003 by the slowing of the US, European,
and Asian economies. Japan's huge government debt, which is
approaching 150% of GDP, and the ageing of the population are two
major long-run problems. Robotics constitutes a key long-term
economic strength with Japan possessing 410,000 of the world's
720,000 "working robots." Internal conflict over the proper way to
reform the ailing banking system continues.
GDP:
purchasing power parity - $3.651 trillion (2002 est.)
GDP - real growth rate:
0.2% (2002 est.)
GDP - per capita:
purchasing power parity - $28,700 (2002 est.)
GDP - composition by sector:
agriculture: 1.4%
industry: 30.9%
services: 67.7% (2001 est.)
Population below poverty line:
NA%
Household income or consumption by percentage share:
lowest 10%: 4.8%
highest 10%: 21.7% (1993)
Distribution of family income - Gini index:
24.9 (1993)
Inflation rate (consumer prices):
-0.9% (2002 est.)
Labor force:
67.7 million (December 2001)
Labor force - by occupation:
services 70%, industry 25%, agriculture 5% (2002 est.)
Unemployment rate:
5.4% (2002)
Budget:
revenues: $441 billion
expenditures: $718 billion, including capital expenditures (public
works only) of about $0 NA (FY 01/02 est.)
Industries:
among world's largest and 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% (2002 est.)
Electricity - production:
1.037 trillion kWh (2001)
Electricity - production by source:
fossil fuel: 60%
hydro: 8.4%
other: 1.8% (2001)
nuclear: 29.8%
Electricity - consumption:
964.2 billion kWh (2001)
Electricity - exports:
0 kWh (2001)
Electricity - imports:
0 kWh (2001)
Oil - production:
17,330 bbl/day (2001 est.)
Oil - consumption:
5.29 million bbl/day (2001 est.)
Oil - exports:
93,360 bbl/day (2001)
Oil - imports:
5.449 million bbl/day (2001)
Oil - proved reserves:
29.29 million bbl (37257)
Natural gas - production:
2.519 billion cu m (2001 est.)
Natural gas - consumption:
80.42 billion cu m (2001 est.)
Natural gas - exports:
0 cu m (2001 est.)
Natural gas - imports:
77.73 billion cu m (2001 est.)
Natural gas - proved reserves:
20.02 billion cu m (37257)
Agriculture - products:
rice, sugar beets, vegetables, fruit; pork, poultry, dairy
products, eggs; fish
Exports:
$383.8 billion f.o.b. (2002 est.)
Exports - commodities:
motor vehicles, semiconductors, office machinery, chemicals
Exports - partners:
US 28.8%, China 9.6%, South Korea 6.9%, Taiwan 6.2%, Hong Kong 6.1%
(2002)
Imports:
$292.1 billion f.o.b. (2002 est.)
Imports - commodities:
machinery and equipment, fuels, foodstuffs, chemicals, textiles,
raw materials (2001)
Imports - partners:
China 18.3%, US 17.4%, South Korea 4.6%, Indonesia 4.2%, Australia
4.1% (2002)
Debt - external:
$NA
Economic aid - donor:
ODA, $9.1 billion (1999)
Currency:
yen (JPY)
Currency code:
JPY
Exchange rates:
yen per US dollar - 125.39 (2002), 121.53 (2001), 107.77 (2000),
113.91 (1999), 130.91 (1998)
Fiscal year:
1 April - 31 March