Japan
LeeAnne VanHevel
World Ranking: 20
Map of Japan
Japan's Score Over Time
Japanese Currency
Quickfacts About Japan/United States
Population: 127.3 Million/316.4 Million
GDP: $4.7 Trillion/$16.8 Trillion
GDP Growth %: 1.5%/1.9%
GDP Per Capita: $36,899/$53,101
Unemployment: 4.1%/7.5%
Inflation: 0.4%/1.5%
Foreign Direct Investment: $2.3 Billion/$187.5 Billion
Legal System
Competitive Market
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
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
Free Trade
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.