Japan’s Economic Structure

Japan had a population of 127.08 million in 2010, with a labor force of 65.7 million. In 2010, Japan’s unemployment rate was the lowest among the G7 nations at 5.058 percent.

One of the biggest challenges that the Japanese government face today is its aging population and negative population growth rate. 22.9 percent of the Japanese population is above the age of 65 while Japan’s total fertility is the 5th lowest in the world.

Japan has a land area of 364,485 square km. 70 percent of Japanese land is forested and unsuitable for agricultural, industrial or residential uses. As such, much of Japan’s economic activity is concentrated in major cities such as Tokyo, Yokohama and Osaka.

With only about 15 percent of its land being arable, Japan imports about 60 percent of grain and fodder crops from other countries, and relies on imports for most of its meat products.

With its lack of natural resources, Japan rely on the imports of commodities such as fuels, foodstuffs, chemical, textiles and raw materials from various countries for its industrial sectors. Japan is the world's third largest oil importer, with 5.033 million barrels per day to meet 45 percent of its energy needs in 2009. Japan boasts the largest fishing fleets in the world, accounting for almost 15 percent of the global catch.

Japan’s Industry Sectors

Despite an overall stagnation on the economy for nearly two decades, Japan’s industries are still among the most highly advanced and innovative in the world. Japanese manufacturing products, particularly in electronics and automobiles, are the world leaders in both production and technological advancements in their respective fields.

In 2010, Industry was responsible for 23 percent of Japan's GDP. Major industries in Japan include motor vehicles; electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, and processed foods.

Japan’s automobile industry produces the second largest amount of vehicles in the world behind China. However, Japanese automobile companies remain among the most valuable and technologically advanced in the world. Japan is home to six of the top twenty largest vehicle manufacturers in the world – Toyota (1st), Renault-Nissan (4th), Honda (8th), Suzuki (10th), Mazda (14th), Mitsubishi (16th).

Japan is also the world’s largest electronics manufacturer with prominent companies such as Sony, Casio, Mitsubishi Electric, Panasonic, Canon, Fujitsu, Nikon, Yamaha etc. Japanese electronic products are renowned for their innovation and quality. Backed by its high-tech industries and companies, Japan had the 8th highest industrial production growth rate in the world for 2010 at 15.5 percent.

Despite the historical significance of Japanese manufacturing, Services are the dominant component of the economy – contributing to 75.9 percent of the GDP in 2010. Major services in Japan include banking, insurance, retailing, transportation and telecommunications.

Japan is the 5th largest importer and exporter in the world. Japan imports raw materials and pays for them by processing the raw materials, thus adding value to them before exporting the output. In recent years, Japan has been the top export market for 15 trading nations worldwide.

Дата добавления: 2015-10-29