Financial intermediation, real estate and business activities contributed 25.1% to the gross value added (GVA) in 2023, followed by mining, manufacturing and utilities activities (23.4%), wholesale, retail and hotels activities (14.8%). In nominal terms, the three sectors are expected to grow by 3.3%, 3.2% and 2.7%, respectively, in 2024.
Three major metropolitan areas in Japan generated 64.6% of the country’s GDP in 2023, and comprised 48.4% of the country’s population, in 2023, according to the analyst.
The NIKKEI 225 index has been on an upward trend. As of May 01, 2024, the index stood at 38,274.1, compared to 25,820.8 on May 01, 2023. Japan's stock market, historically stagnant, is now booming with the Nikkei 225 index hitting a 34-year high. In 2023, it outperformed the S&P 500, with a 28.2% gain, and continued to surge in the first three months of 2024. With signs of economic recovery, including wage increases, and China's market challenges, Japanese stocks remain attractive.
Three major metropolitan areas in Japan generated 64.6% of the country’s GDP in 2023, and comprised 48.4% of the country’s population, in 2023, according to the analyst.
The NIKKEI 225 index has been on an upward trend. As of May 01, 2024, the index stood at 38,274.1, compared to 25,820.8 on May 01, 2023. Japan's stock market, historically stagnant, is now booming with the Nikkei 225 index hitting a 34-year high. In 2023, it outperformed the S&P 500, with a 28.2% gain, and continued to surge in the first three months of 2024. With signs of economic recovery, including wage increases, and China's market challenges, Japanese stocks remain attractive.
Scope
- According to the World Bank, Logistics Performance Index (2023), Japan was ranked 13th out of 139 nations in 2023.
Reasons to Buy
- Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
- PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
- Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
- This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.
Table of Contents
- Did You Know?
- Country Highlights
- Key Economic Updates
- Country Snapshot
- Political Landscape
- Economic Landscape
- Social Landscape
- Technological Landscape
- Legal Landscape
- Environmental Landscape
- Outlook
- Exhibit 1: Japan’s performance in country risk analysis in comparison to Asia-Pacific and World average
- Exhibit 2: Performance overview (score: 0-100)
- Exhibit 3: Broad categories and weights behind the index
- Exhibit 4: NIKKEI 225 index, (May 2023 - May 2024)
- Exhibit 5: Key sectors contribution to the economy (2019-26f)
- Exhibit 6: FDI flows (2019-23) and FDI by industry (2023 [Jan-Sep])
- Exhibit 7: Investment by region (2023) and by country (2019-23)
- Exhibit 8: Key infrastructure indicators
- Exhibit 9: Real GDP and household consumption growth rate (2019-26f)
- Exhibit 10: Real GDP growth rate comparison (2023)
- Exhibit 11: Volume of exports and imports growth (2019-26f)
- Exhibit 12: Current account balance (2019-26f)
- Exhibit 13: Top three commodity exports, % of total exports (2019-23)
- Exhibit 14: Vehicles other than railway or tramway rolling stock, and parts and accessories thereof export, % of world’s total (2022)
- Exhibit 15: Interest rates (April 2019 - April 2024)
- Exhibit 16: Exchange rate and inflation (2019-26f)
- Exhibit 17: Public finance (2019-26f)
- Exhibit 18: General government debt (2019-26f)
- Exhibit 19: Unemployment rate (2019-26f)
- Exhibit 20: Average annual wages (2019-26f)
- Exhibit 21: Labor cost index (2019-26f)
- Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025f)
- Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025f)
- Exhibit 24: Gender split (1995, 2005, 2015, 2025f)
- Exhibit 25: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2023)
- Exhibit 26: Number of patents granted per million population (2022)
- Exhibit 27: High technology exports, % of manufactured exports (2022)
- Exhibit 28: Rule of law index (rankings) 2023
- Exhibit 29: Corruption perceptions index (rankings) (2023)
- Exhibit 30: Renewable energy, installed capacity (2019-23)
- Exhibit 31: CO2 emissions (2018-22)
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Sony
- Nikon
- Nissan
- Panasonic
