Category: Japan Economy

December 19, 2019

In 2019 and 2020, the Japanese economy will continue growing slightly above its potential (which stands at around 0.6%) supported by: the ultra-monetary monetary policy of the Bank of Japan, investments in infrastructures (to prepare the Games Tokyo Olympics 2020), and the measures government to encourage investment business and market share labor.


Japan is a market of high purchasing power, mature and with a lot of international competition, where countries that have a reputation as suppliers of good quality (Spain, Italy, USA, and others) find it easier to sell their products.


According to The International Trade Administration “Japan’s population is declining as it ages rapidly. The population may decrease by as much as one third by 2060, from 127 million to 87 million. The proportion of the population older than 65 will rise from 27% today to 40% by 2060. The Japanese Government and business community seek to offset its effects on economic growth and government budget resources. The aging population shapes demand and opportunities in various segments:

  • Medical devices and equipment
  • Pharmaceuticals
  • Healthcare facilities and infrastructure, including in-home care
  • Biotechnology
  • Healthcare information technology
  • Safety-related products and services
  • Robotics
  • Leisure and travel Educational services
  • Home delivery services
  • Financial services

The Guardian states that “Japan's business culture is very formalised and subject to many protocols. It's easy for an outsider unaware of the appropriate etiquette to cause offence accidentally. Greg McCray is the chief executive of Acal Energy, a hydrogen fuel cell company based in Cheshire, which is expanding into Japan. McCray also spent over a decade trading with Japan at a previous company and has learned much about doing business there. "Japanese businesses are very formal, you don't walk in and start telling jokes. You wear a suit and tie, follow protocol and respect the hierarchy of the business," he says.


As for the food industry, the Japanese consumer attaches great importance to food safety and is aware of the adverse effects on health that the excessive use of chemical products have, which is why the demand has increased for organic products.


The Japanese consumer has a high purchase value, is very demanding in terms of quality and relies heavily on Japanese companies that provide them with products or services, whether local or imported. As for agricultural production, the Japanese market does not meet domestic demand, so it requires importing fruits and vegetables in large proportions.



December 5, 2019

Japan, located in East Asia, has an area of 377,970 km2. With a population of 126,529,100 people, Japan is a very populated country and has a high population density, with 335 inhabitants per km2.


Its capital is Tokyo and its currency is Japanese Yen. Japan is the third-largest economy in the world by volume of GDP.

The last annual CPI variation rate published in Japan in October 2019 was 0.2%. Japan is one of the countries with the lowest percentage of unemployed people in the world.

There are several reasons why exporting products and services to Japan:


High level of per-capita income

Between 27% and 30% of the per capita income of the Japanese citizen goes to food consumption. Considering that the GDP per capita amounts to USD $ 34,100 per year, the amount of food expenditure per person would range around USD $ 10,000.



Exports from Japan are not subject to any restrictions. The "Export Permit" and the "Export Approval" are necessary even if they only concern internationally recognized goods because they are subject to such restrictions (weapons, nuclear energy, missiles, etc.). The restrictions on rice have been lifted.



According to Santander Trade Portal “Japan has 128 ports, including 23 main ports, located along the Japanese coast. Ports are the basis of 99% of Japanese foreign trade and 42% of internal distribution. The 'Three Great Bays' handle about 35% of all sea cargo in Japan. This group includes the port of Tokyo (six ports, including Yokohama and Tokyo), the port of Osaka (five ports including Kobe and Osaka) and the port of Ise (five ports, including Nagoya). In 2014, the transfer of merchandise by air reached 8,662 million tons per kilometer (the sixth highest volume globally)”.


Doing business

Japan is in the 39th position of the 190 that make up the Doing Business ranking, which classifies countries according to the ease they offer to do business.



Japan has obtained 73 points in the Corruption Perception Index published by the Organization for International Transparency, so its inhabitants have a low level of perception of government corruption.