Economic Overview Of Japan

Japan, though not a large country in terms of either size or population, is today among the world’s most formidable economies. Despite having suffered terribly in the Second World War, Japan has managed, through sheer dint of hard work, excellent work ethics, and a good rapport between the government and the private sector, to make itself the second most technologically powerful economy in the world, and the third largest economy too. The main reason for Japan’s success is the fact that even at the grassroots level, co-operation is the key word: manufacturers, suppliers and distributors form groups called 'keiretsu’, which work together for maximum benefit to all. The bulk of the economy is based on industry; agriculture and services form relatively minor sectors.

The financial crisis of 1997-98 hit Japan badly too, but thanks to the country’s intelligent recovery tactics, the economy has managed to get back on track to quite an extent.

Some facts:

GDP                                          US$2.95 trillion
GDP per head                            US$ 31,451
Annual growth rate                   0%
Inflation                                  2%
Major industries                       Automobiles, chemicals, office machinery
Major trading partners:            USA, Hong Kong, Taiwan, South Korea, Germany, China