The Japanese economy, heavily reliant upon manufacturing and closely aligned with other developed nations around the world has an estimated 2023 per capita GDP of USD 52,000 (PPP). The country is a powerhouse of innovation and hi-tech manufacturing, as well as being the second largest producer of automobiles. While Japan is the fourth largest importer in the world, it continues to run an annual trade surplus and is the world’s leading creditor nation. As of 2022, 47 of the Fortune Global 500 companies are based in Japan, and Japan has the third largest financial asset base on the globe, valued at USD 12 trillion.

Japan has emerged from a 20-year period of relative economic stagnation, although its GDP growth remained consistent with other member of the G7 and G20 during that time. Recent years has seen the rapid growth of other Asian economies nearby, particularly China, South Korea and Taiwan. Japan also faces serious long term issues with an aging and declining population, leading to issues with lowering productivity as well as increasing social security costs. However the Japanese market remains high value and sophisticated with Japanese consumers having a taste for top quality international goods and services. The shift in Japanese demographics is leading to demand in trend-setting pharmaceuticals, medical technologies and advanced manufacturing solutions along with high value financial and travel services. The degree of Japan’s integration with US and Western economic systems continues to provide opportunity in advanced sectors including aerospace, energy, security and consumer technology.

Japan is a country marked by its respect for traditional values and structures, so successful market entry and market expansion absolutely requires local knowledge and connections. Asian Insiders offers deep local expertise and years of established connections with officials and business leaders that will assist our client organisations connect and engage with the Japanese market.