World Ranking: 20
Map of Japan
Japan is located on the East side of the world and consists of 145,925 square miles of islands
Japan's Score Over Time
Japan's Score is currently been rising since 2012.
Japanese currency is known as yen
A major source of economic progress is important because it gives a strong incentive to create better products and discover lower-cost methods of productions. Japan has developed in the competitive market because of the "Abenomics" plan by Prime Minister Shinzo Abe which has decreased defense spending over 13 years and pushed forward on collective self-defense.
Limits on Government Regulation
An Efficient Capital Market
Monetary Stability is required to control inflation, investment, to maintain economic stability. In relation to the world average, Japan has a significantly higher freedom. Japan has a good functioning labor market but an urge for longer employment and rank based wages slow the development of greater flexibility. Prices are generally set by market forces, but the government subsidizes numerous industries and sectors.
Low Tax Rates
Japan has a very free trade, similar to the United States, and higher than the world average. They have a 1.2% average tariff rate and import investments are low. The part of trade most controlled by the government is in the banking sector, which they hold 100% of. Although trade is free, high taxes cause foreign investors to struggle with trade.
Where is Japan's Economy Going?
Japan has the 8th highest populated nation in the world!
One of the most promising fields of economy growth for Japan is in technology. They created ASIMO, a human robot developed by Honda that can walk on two legs and make out what people are speaking about.
Japan's main agricultural product is rice. It is the most eaten in Japan because due to their high population, they aren't able to supply enough wheat or soybeans. Fishing is also very important to Japan and they are very involved in the fishing industry.