Japan

Japan is a constitutional monarchy located in East Asia, ranking among the world's leading economic powers and is a member of the developed nations. Its economy has long maintained a strong international presence, driven by manufacturing industries such as automobiles, precision machinery, and electronics, as well as export industries based on these sectors. In recent years, as the declining birthrate, aging population, and accompanying population decline pose significant socioeconomic challenges, the service industry has increased in importance, and initiatives to stimulate domestic demand are also underway.

According to the latest indicator snapshot (as of 2025), Japan's nominal GDP (in US dollars) is approximately $4.44 trillion, and nominal GDP per capita (in US dollars) is approximately $35,951. The real GDP growth rate is 1.2%, showing an increase of 1.4 percentage points year-on-year, indicating a gradual improvement in the economy. Furthermore, the real GDP growth rate per capita has also risen by 1.5 percentage points from the previous year to 1.7%, meaning that individual wealth is, in real terms, improving, even as the total population stands at approximately 123 million, showing a year-on-year decrease of -0.5%. The consumer price inflation rate is 3.2%, an increase of 0.4 percentage points year-on-year, suggesting that inflationary pressures persist.

In the labor market, the unemployment rate remains low at 2.5% and has been stable, largely unchanged (-0.0pt) from the previous year. Regarding external economic relations, the current account balance (as a percentage of GDP) recorded a surplus of 4.9%, an improvement of 0.2 percentage points year-on-year. Trade (as a percentage of GDP) accounted for 44.9% in 2024, highlighting the importance of trade in the economy. From these data, it is suggested that despite facing the structural challenge of population decline, the Japanese economy maintains moderate growth and is characterized by a stable labor market and a robust external balance.