I.

Economic Profile

Japan is an island country lying off the east coast of Asia. It consists of a great string of islands
in a northeast-southwest arc that stretches for approximately 1,500 miles (2,400 km) through the
western North Pacific Ocean. Nearly the entire land area is taken up by the country’s four main islands;
from north to south these are Hokkaido (Hokkaidō), Honshu (Honshū), Shikoku, and Kyushu (Kyūshū).
Honshu is the largest of the four, followed in size by Hokkaido, Kyushu, and Shikoku. In addition, there
are numerous smaller islands, the major groups of which are the Ryukyu (Nansei) Islands (including the
island of Okinawa) to the south and west of Kyushu and the Izu, Bonin (Ogasawara), and Volcano (Kazan)
islands to the south and east of central Honshu. The national capital, Tokyo (Tōkyō), in east-central
Honshu, is one of the world’s most populous cities.

The Economy of Japan

The economy of Japan is a highly developed and market-oriented 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. According to the International Monetary Fund,
the country's per capita GDP (PPP) was at $38,937(2016).Due to a volatile currency exchange rate,
Japan's GDP as measured in dollars fluctuates widely. Accounting for these fluctuations through use of
the Atlas method, Japan is estimated to have a GDP per capita of around $38,490.

Population

The current population of Japan is 127,070,117 as of Sunday, November 18, 2018, based on the latest
United Nations estimates.Japan population is equivalent to 1.67% of the total world population.Japan
ranks number 11 in the list of countries (and dependencies) by population.The population density in
Japan is 349 per Km2 (904 people per mi2).The total land area is 364,555 Km2 (140,755 sq. miles).93.8 %
of the population is urban (119,327,813 people in 2018)

Japan Unemployment and Employment Rate

The unemployment rate in Japan edged down to 2.3 percent in September of 2018 from 2.4
percent in the previous month and slightly below market expectations of 2.4 percent. It was the
lowest jobless rate since May. Meanwhile, the jobs-to-applicants ratio inched higher to 1.64
from 1.63 in September and was the the highest since January 1974. Unemployment Rate in
Japan averaged 2.73 percent from 1953 until 2018, reaching an all time high of 5.50 percent in
June of 2002 and a record low of 1 percent in November of 1968.

The number of unemployed declined by 70 thousand from a month earlier to 1.6 million in
September, while employment increased by 30 thousand to 66.65 million. The labour force
declined by 40 thousand to 68.25 million and those detached from the labour force went up 50
thousand to 42.64 million.

Youth unemployment rate, measuring job-seekers between 15 and 24 years old, dropped to 3.4
percent in September from 4.1 percent in the previous month. A year earlier, the
unemployment rate was higher at 2.8 percent.
Employment Rate in Japan increased to 60.50 percent in September from 60.20 percent in
August of 2018. Employment Rate in Japan averaged 59.72 percent from 1980 until 2018,
reaching an all time high of 63.50 percent in June of 1991 and a record low of 55.90 percent in
January of 2012.

Top Import Product of Japan

As of June 2018, Japan’s import purchases were valued at $363.6 billion up 11.2% compared to the
first 6 months of 2017.The following product groups represent the highest dollar value in Japan’s
import purchases during 2017. Also shown is the percentage share each product category represents
in terms of overall imports into Japan.

1. Mineral fuels including oil: US$141.3 billion (21.1% of total imports)

2. Electrical machinery, equipment: $97.6 billion (14.5%)
3. Machinery including computers: $65.2 billion (9.7%)
4., technical, medical apparatus: $25.5 billion (3.8%)
5. Vehicles: $22.4 billion (3.3%)
6. Pharmaceuticals: $22.4 billion (3.3%)
7. Ores, slag, ash: $20.4 billion (3%)
8. Organic chemicals: $15.9 billion (2.4%)
9. Plastics, plastic articles: $15.1 billion (2.2%)
10. Clothing, accessories (not knit or crochet): $13.6 billion (2%)

Top 10 Export Product of Japan

As of June 2018, Japan’s exported goods were valued at $369.5 billion up 9.8% compared
to the first 6 months of 2017.Japan’s unemployment rate was an estimated 2.8% as of
December 2017 down from 3.1% in 2016, according to Trading Economics.The following
export product groups represent the highest dollar value in Japanese global shipments
during 2017. Also shown is the percentage share each export category represents in terms
of overall exports from Japan.

1. Vehicles: US$146.2 billion (20.9% of total exports

2. Machinery including computers: $138.4 billion (19.8%)
3. Electrical machinery, equipment: $105.6 billion (15.1%)
4. Optical, technical, medical apparatus: $39.8 billion (5.7%)
5. Iron, steel: $28 billion (4%)
6. Plastics, plastic articles: $25.1 billion (3.6%)
7. Organic chemicals: $17.9 billion (2.6%)
8. Gems, precious metals: $15.2 billion (2.2%)
9 Ships, boats: $12.3 billion (1.8%)
10. Mineral fuels including oil: $11.4 billion (1.6%)

Trading Partners of Japan

 1. United States: US$135.1 billion (19.3% of total Japanese exports)
2. China: $132.8 billion (19%)
3. South Korea: $53.3 billion (7.6%)
4. Taiwan: $40.6 billion (5.8%)
5. Hong Kong: $35.4 billion (5.1%)
6. Thailand: $29.4 billion (4.2%)
7. Singapore: $22.6 billion (3.2%)
8. Germany: $18.9 billion (2.7%)
9. Australia: $16 billion (2.3%)
10. Vietnam: $15.1 billion (2.2%)
11. United Kingdom: $13.8 billion (2%)
12. Indonesia: $13.4 billion (1.9%)
13. Malaysia: $12.8 billion (1.8%)
14. Netherlands: $12.4 billion (1.8%)
15. Mexico: $11.3 billion (1.6%)

Trade Organization
APEC

Asia-Pacific Economic Cooperation (APEC) is an inter-governmental forum for 21 Pacific Rim

member economies that promotes free trade throughout the Asia-Pacific region. Inspired from
the success of Association of Southeast Asian Nations (ASEAN)’s series of post-ministerial
conferences launched in the mid-1980s, the APEC was established in 1989 in response to the
growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in
other parts of the world; and to establish new markets for agricultural products and raw
materials beyond Europe.Headquartered in Singapore, the APEC is recognized as the oldest
forum and highest-level multilateral bloc in the Asia-Pacific region, and exerts a significant
global influence.

World Trade Organization

The World Trade Organization (WTO) is an intergovernmental organization that regulates

international trade. The WTO officially commenced on 1 January 1995 under the Marrakesh
Agreement, signed by 124 nations on 15 April 1994, replacing the General Agreement on Tariffs
and Trade (GATT), which commenced in 1948. It is the largest international economic
organization in the world.

Organisation for Economic Co-operation and Development

The Organisation for Economic Co-operation and Development (OECD; French: Organisation de
coopération et de développement économiques, OCDE) is an intergovernmental economic
organisation with 36 member countries, founded in 1961 to stimulate economic progress and
world trade. It is a forum of countries describing themselves as committed to democracy and
the market economy, providing a platform to compare policy experiences, seeking answers to
common problems, identify good practices and coordinate domestic and international policies
of its members. Most OECD members are high-income economies with a very high Human
Development Index (HDI) and are regarded as developed countries. As of 2017, the OECD
member states collectively comprised 62.2% of global nominal GDP (US$49.6 trillion) and 42.8%
of global GDP (Int$54.2 trillion) at purchasing power parity.OECD is an official United Nations
observer.

G20

The G20 (or Group of Twenty) is an international forum for the governments and central bank
governors from Argentina, Australia, Brazil, Canada, China, the European Union, France,
Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea,
Turkey, the United Kingdom, and the United States. Founded in 1999, the G20 aims to discuss
policy pertaining to the promotion of international financial stability.It seeks to address issues
that go beyond the responsibilities of any one organization.The G20 heads of government or
heads of state have periodically conferred at summits since their initial meeting in 2008, and the
group also hosts separate meetings of finance ministers and foreign ministers due to the
expansion of its agenda in recent years.

G8

The forum originated with a 1975 summit hosted by France that brought together
representatives of six governments: France, Germany, Italy, Japan, the United Kingdom, and the
United States, thus leading to the name Group of Six or G6. The summit came to be known as
the Group of Seven, or G7, in 1976 with the addition of Canada. Russia was added to the
political forum from 1997, which the following year became known as the G8. In March 2014
Russia was suspended indefinitely following the annexation of Crimea, whereupon the political
forum name reverted to G7.In 2017 Russia announced its permanent withdrawal from the G8.

Sector of the Economy

Agriculture

The Japanese agricultural sector accounts for about 1.4% of the total country's GDP. Only 12% of Japan's
land is suitable for cultivation. Due to this lack of arable land, a system of terraces is used to farm in small
areas. This results in one of the world's highest levels of crop yields per unit area, with an overall
agricultural self-sufficiency rate of about 50% on fewer than 56,000 km² (14 million acres) cultivated.

Japan's small agricultural sector, however, is also highly subsidized and protected, with government
regulations that favor small-scale cultivation instead of large-scale agriculture as practiced in North
America.There has been a growing concern about farming as the current farmers are aging with a
difficult time finding successors.
Rice accounts for almost all of Japan's cereal production.Japan is the second-largest agricultural product
importer in the world. Rice, the most protected crop, is subject to tariffs of 777.7%.

Although Japan is usually self-sufficient in rice (except for its use in making rice crackers and processed
foods) and wheat, the country must import about 50% of its requirements of other grain and fodder
crops and relies on imports for half of its supply of meat. Japan imports large quantities of wheat and
soybeans.Japan is the 5th largest market for EU agricultural exports.Over 90% of mandarin oranges in
Japan are grown in Japan. Apples are also grown due to restrictions on apple imports.

Fishery

Japan ranked fourth in the world in 1996 in tonnage of fish caught.Japan captured 4,074,580 metric tons
of fish in 2005, down from 4,987,703 tons in 2000, 9,558,615 tons in 1990, 9,864,422 tons in 1980,
8,520,397 tons in 1970, 5,583,796 tons in 1960 and 2,881,855 tons in 1950.In 2003, the total
aquaculture production was predicted at 1,301,437 tonnes. In 2010, Japan's total fisheries production
was 4,762,469 fish. Offshore fisheries accounted for an average of 50% of the nation's total fish catches
in the late 1980s although they experienced repeated ups and downs during that period.

Coastal fishing by small boats, set nets, or breeding techniques accounts for about one third of the
industry's total production, while offshore fishing by medium-sized boats makes up for more than half
the total production. Deep-sea fishing from larger vessels makes up the rest. Among the many species of
seafood caught are sardines, skipjack tuna, crab, shrimp, salmon, pollock, squid, clams, mackerel, sea
bream, sauries, tuna and Japanese amberjack. Freshwater fishing, including salmon, trout and eel
hatcheries and fish farms,takes up about 30% of Japan's fishing industry. Among the nearly 300 fish
species in the rivers of Japan are native varieties of catfish, chub, herring and goby, as well as such
freshwater crustaceans as crabs and crayfish.Marine and freshwater aquaculture is conducted in all 47
prefectures in Japan.

Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global
catch,prompting some claims that Japan's fishing is leading to depletion in fish stocks such as tuna.Japan
has also sparked controversy by supporting quasi-commercial whaling.

Industry

Japanese manufacturing and industry is very diversified, with a variety of advanced industries that are
highly successful. Industry accounts for 24% of the nation's GDP.Industry is concentrated in several
regions, with the Kantō region surrounding Tokyo, (the Keihin industrial region) as well as the Kansai
region surrounding Osaka (the Hanshin industrial region) and the Tōkai region surrounding Nagoya (the
Chūkyō–Tōkai industrial region) the main industrial centers.Other industrial centers include the
southwestern part of Honshū and northern Shikoku around the Seto Inland Sea (the Setouchi industrial
region); and the northern part of Kyūshū (Kitakyūshū). In addition, a long narrow belt of industrial
centers called the Taiheiyō Belt is found between Tokyo and Fukuoka, established by particular
industries, that have developed as mill towns.

Japan enjoys high technological development in many fields, including consumer electronics, automobile
manufacturing, semiconductor manufacturing, optical fibers, optoelectronics, optical media, facsimile
and copy machines, and fermentation processes in food and biochemistry. However, many Japanese
companies are facing emerging rivals from the United States, South Korea, and China.

Mining and Petroleum Exploration

Japan's mining production has been minimal, and Japan has very little mining deposits.However, massive
deposits of rare earths have been found off the coast of Japan. In the 2011 fiscal year, the domestic yield
of crude oil was 820 thousand kiloliters, which was 0.4% of Japan's total crude processing volume.

Automobile Manufacturing

Japan is the third biggest producer of automobiles in the world.Toyota is currently the world largest car
maker, and the Japanese car makers Nissan, Honda, Suzuki, and Mazda also count for some of the largest
car makers in the world.

Services

Japan's service sector accounts for about three-quarters of its total economic output. Banking,
insurance, real estate, retailing, transportation, and telecommunications are all major industries such as
Mitsubishi UFJ, Mizuho, NTT, TEPCO, Nomura, Mitsubishi Estate, ÆON, Mitsui Sumitomo, Softbank, JR
East, Seven & I, KDDI and Japan Airlines counting as one of the largest companies in the world. Four of
the five most circulated newspapers in the world are Japanese newspapers. The Koizumi government set
Japan Post, one of the country's largest providers of savings and insurance services for privatization by
2015.The six major keiretsus are the Mitsubishi, Sumitomo, Fuyo, Mitsui, Dai-Ichi Kangyo and Sanwa
Groups. Japan is home to 251 companies from the Forbes Global 2000 or 12.55% (as of 2013).

II. Political Profile

The government of Japan is a constitutional monarchy in which the power of the Emperor is
limited and is relegated primarily to ceremonial duties. As in many other states, the
Government is divided into three branches: the Legislative branch, the Executive branch and the
Judicial branch.

The Government runs under the framework established by the Constitution of Japan, adopted
in 1947. It is a unitary state, containing forty-seven administrative divisions, with the Emperor as
its head of state. His role is ceremonial and he has no powers related to Government.Instead, it
is the Cabinet, comprising the Ministers of State and the Prime Minister, that directs and
controls the Government. The Cabinet is the source of power of the Executive branch, and is
formed by the Prime Minister, who is the head of government.He or she is designated by the
National Diet and appointed to office by the Emperor.

The National Diet is the legislature, the organ of the Legislative branch. It is bicameral,
consisting of two houses with the House of Councillors being the upper house, and the House of
Representatives being the lower house. Its members are directly elected from the people, who
are the source of sovereignty.[7] The Supreme Court and other inferior courts make up the
Judicial branch, and they are independent from the executive and the legislative branches.

Prime Minister of Japan

Shinzō Abe (安倍 晋三 Abe Shinzō, IPA: [abe ɕin(d)zoː]; born 21 September 1954) is a Japanese
politician serving as the 63rd and current Prime Minister of Japan and Leader of the Liberal
Democratic Party (LDP) since 2012, previously being the 57th officeholder from 2006 to 2007.
He is the third-longest serving Prime Minister in post-war Japan.[1]