Japan

Quick Facts

🇯🇵
Capital:
Tokyo
Official Language(s):
Japanese
Currency:
Japanese yen (¥)
Population:
125,836,021

Overview

Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea in the south. The Japanese archipelago consists of four major islands—Hokkaido, Honshu, Shikoku, and Kyushu—and thousands of smaller islands, covering 377,975 square kilometers (145,937 sq mi). Japan has a population of over 123 million as of 2025, making it the eleventh-most populous country.

Institutional Framework

The strength of a country's institutions directly impacts its economic development and stability. Strong institutions reduce uncertainty, protect property rights, and enable efficient markets through:
  • Rule of law and contract enforcement
  • Control of corruption
  • Government effectiveness and regulatory quality

* Indicators normalized to 0-100 scale

Economic Structure

The composition of an economy reveals its strengths, vulnerabilities, and potential for growth. Understanding the balance between sectors (agriculture, industry, services) and their sophistication helps assess economic resilience and development opportunities.

Economic Health & Trade

Economic Scale & Power

An economy with $5.03TB(2021) GDP, showing moderate growth at 2.6%(2021). Advanced economy with high living standards.

GDP Growth
2.6%(2021)
GDP PPP
$5.57T

Economic Structure

Economic structure shows 69.1%(2021) in services, 29.3%(2021) in industry, and 1.0%(2021) in agriculture. Balanced economic structure.

Economic Health & Trade

Economic health indicators show 2.8%(2021) unemployment and -0.2%(2021) inflation. Trade profile with 18.1%(2021) exports and 18.6%(2021) imports as % of GDP.

Unemployment
2.8%(2021)
Inflation
-0.2%(2021)
Exports/GDP
18.1%(2021)
Imports/GDP
18.6%(2021)

Innovation & Competitiveness

Innovation capacity determines a country's ability to compete in the global knowledge economy. Key indicators like R&D investment, patent applications, and high-tech exports reveal the potential for sustainable economic growth and value creation.

High-Tech Exports

18.0

% of manufactured exports

ICT Exports

8.6

% of total goods exports

Digital Adoption

82.9

% of population using internet

Mobile Connectivity

160.9

Subscriptions per 100 people

Manufacturing Value

20.9

% of GDP

International Position

A country's integration into global markets affects its economic opportunities and risks. Trade relationships, financial flows, and geographic advantages or constraints shape its development trajectory and resilience to external shocks.

Financial & Trade Geography

Trade Profile

Trade represents 36.77%(2021) of GDP, with a trade balance of -0.52%(2021).

FDI Inflows
0.70%(2021)
FDI Outflows
4.16%(2021)

Financial Security

External Debt

N/A

Foreign Reserves

$1405.75B(2021)(16.1 months of imports)

Supply Chain & Technology

Technology Trade

ICT Imports
13.08%(2021)
High-Tech Exports
18.00%(2021)

Economic Structure

Manufacturing
20.86%(2021)
Services
69.13%(2021)

Trade Agreements & Dependencies

Trade Agreements

CPTPPRCEPEU-Japan EPA

Critical Dependencies

  • semiconductors
  • automotive

Growth Trajectory

Understanding growth patterns helps predict future economic performance and development challenges. Key factors include productivity trends, investment levels, and structural transformation progress, which together determine long-term prosperity potential.

Growth Potential Indicators

Human Capital

Education and workforce development

50.1/100

Trade Position

International trade and competitiveness

13.8/100

Economic Structure

Sectoral balance and sophistication

42.7/100

Demographics & Human Capital

Demographics are fundamental to understanding a country's economic potential and challenges. The population structure influences everything from labor force availability to social security systems and public spending priorities.

Demographics

Population Overview

Total population of 125,681,593(2021) with -0.5%(2021) annual growth. Median age is N/A with fertility rate at 1.3 births/woman(2021).

Life Expectancy
84.446 years(2021)
Birth Rate
6.6 per 1,000(2021)

Age Structure

Working-age population (58.7%(2021)) with youth at 12.0%(2021) and elderly at 29.2%(2021). Total dependency ratio: 70.3%(2021).

Young Dependency
20.5%(2021)
Old Dependency
49.7%(2021)

Gender & Migration

Population is 51.2%(2021) female and 48.8%(2021) male, with sex ratio of 1.051 males/female(2021) at birth. Net migration: -34,996(2021).

Male Mortality
64.319/1,000(2021)
Female Mortality
35.66/1,000(2021)

Development Indicators

Urban population growing at -0.4%(2021) annually, with 8.1%(2021) in rural areas. Literacy rate: N/A.

Urbanization
91.9%(2021)
Infant Mortality
1.8 per 1,000(2021)

Population Structure

The population pyramid visualizes the age and gender distribution, revealing crucial insights about economic sustainability. A balanced pyramid with a strong working-age population (typically ages 15-64) indicates greater economic potential, as this group supports both the younger and older generations through:
  • Labor force participation and productivity
  • Tax contributions to support social services
  • Innovation and economic growth

An aging population (top-heavy pyramid) or youth bulge (bottom-heavy) can create demographic pressures on social systems and economic stability.

Source: World Bank Development Indicators

Security Context

Security considerations fundamentally affect economic development and investment attractiveness. Both geographic factors and military capabilities influence a country's stability and its ability to protect economic interests and maintain sustainable growth.

Geographic & Resource Security

Food & Agriculture

Arable land comprises 11.2%(2021) of territory, with 12.8%(2021) total agricultural land. Cereal yield: 6,787.3 kg/hectare(2021).

Food Production Index
100.37(2021)
Cereal Production
11,898,822.25 MT(2021)

Energy Security

Net energy imports at N/A of consumption. Renewable energy makes up 100.0%(2021) of total. Electricity access: N/A.

Resource Rents
N/A

Water Resources

Fresh water resources of 1,668 m³/capita(2021) per person. Annual precipitation: 68.409 mm(2021).

Forest Area
1.0%(2021)

Environmental Vulnerability

3421.3%(2021) of population affected by climate disasters. Forest coverage at 1.0%(2021) providing natural buffer.

Annual Rainfall
68.409 mm(2021)

Military & Security

Military Capabilities

Military expenditure at N/A of GDP. Armed forces personnel: 1,112,000,000(2021) ( N/A of labor force).

Arms Exports
1,508 USD(2021)
Arms Imports
N/A

Strategic Status

Military Alliances

US-Japan Security TreatyMajor Non-NATO Ally

Nuclear Status

Non-Nuclear State

Security Environment

Refugee population: 2,284,807(2021)Internally displaced: 2,652,846(2021)

Strategic Geography

Strategic Features