Wednesday, June 6, 2018

Japanese Economy


Japan has the third largest economy on the planet. Japan has a population of 127,185,332, a labor force of 65 million and a land mass of 145,132 square miles. Poverty is 15.7%, Inflation is 0.7%, Unemployment is 2.8%.  In 2017 nominal GDP was $4.884 trillion, per capita GDP was $38,550 per year, GDP by sector was services 71.1%, industry 27.7% and agriculture 1.2%. Labor force occupations include services 70.9%, industry 26.2% and agriculture 2.9%, Main industries include motor vehicles, electronic equipment, machine tools, steel, chemicals, textiles and processed foods.

Exports were $683.3 billion including motor vehicles 14.9%, iron and steel products 5.4%, semiconductors 5%, auto parts 4.8%, power generating machinery 3.5% and plastic materials 3.3% with sales to the US 20.2%, China 17.6% EU 11.4%, South Korea 7.2% Taiwan 6.1% and other 37.4%.

Imports were $625.9 billion including petroleum 16.1%, liquid natural gas 9.1%, clothing 3.8%, semiconductors 3.3%, coal 2.4%, audio and visual apparatus 1.4% purchased from China 25.6%, EU 12.4%, US 11.4%, Australia 5%, South Korea 4.1% and other 41.3%

In 2016, government debt was 234.7% of GDP, spending was $1.931 trillion and revenue was $1.696 trillion.


Japan has negligible mineral resources with virtually no natural energy resources, Japan is the world's largest importer of coal and liquefied natural gas, as well as the second largest importer of oil.

Japan has the world’s 6th biggest EEZ (Exclusive Economic Zones) where gold, silver, copper, zinc, lead, cobalt, manganese, oil and methane hydrate on its ocean floor.

The government is trying to make a technology to dig such resources practical and useful. The issue is how to mine them in a way that is cost-efficient and eco-friendly. I guess methane hydrate has the biggest impact among those resources. Energy is a huge matter. Almost all of the nuclear power plants in Japan has suspended their operation. So Japan has to rely largely on fire power plants which need fuel for electricity supply. Nearly 100 % of fuel is imported from overseas in Japan, which has issues of unstable energy security and bad trade balance. If Japan established a method to mine methane hydrate stably at a low cost, this situation might change.


Japan’s household savings rate averages about 26%. Household debt to GDP is 50%. The Japanese are very frugal.

Japan funds its government debt with bond sales to Japanese corporations and households with no need for outside funds.

Norb Leahy, Dunwoody GA Tea Party Leader



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