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@Japan:Economy
Overview: Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (roughly 1% of GDP) have helped Japan advance with extraordinary rapidity to the rank of second most powerful economy in the world. Industry, the most important sector of the economy, is heavily dependent on imported raw materials and fuels. Usually self-sufficient in rice, Japan must import about 50% of its requirements of other grain and fodder crops. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. Overall economic growth has been spectacular: a 10% average in the 1960s, a 5% average in the 1970s and 1980s. Economic growth came to a halt in 1992-93 largely because of contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets. Growth resumed at a 0.6% pace in 1994 largely because of consumer demand. As for foreign trade, the stronger yen and slower global growth are containing export growth. Unemployment and inflation remain remarkably low in comparison with the other industrialized nations. Japan continues to run a huge trade surplus - $121 billion in 1994, roughly the same size as in 1993 - which supports extensive investment in foreign assets. Prime Minister MURAYAMA has yet to formalize his government's plans for administrative and economic reform, including reduction in the trade surplus. As leader of a coalition government, he has softened his own socialist positions. The crowding of the habitable land area and the aging of the population are two major long-run problems.
National product: GDP - purchasing power parity - $2.5274 trillion (1994 est.)
National product real growth rate: 0.6% (1994 est.)
National product per capita: $20,200 (1994 est.)
Inflation rate (consumer prices): 0.7% (1994)
Unemployment rate: 2.9% (1994)
Budget:
revenues: $569 billion
expenditures: $671 billion, including capital expenditures (public
works only) of about $126 billion (1994 est.)
Exports: $395.5 billion (f.o.b., 1994)
commodities: manufactures 97% (including machinery 46%, motor vehicles
20%, consumer electronics 10%)
partners: Southeast Asia 33%, US 29%, Western Europe 18%, China 5%