Reason1. World's third largest economy

Reason1. World's third largest economy

GDP


World

No. 3

Domestic Competition

(Market competitiveness evaluated on the extent of market dominance, competiti on in services etc.)

World

No. 5

  1. The Global Competitiveness Report 2019(World Economic Forum)


  1. (in billion US dollars)

Rank Country Nominal GDP
1 United States 20,937
2 China 14,723
3 Japan 4,975
4 Germany 3,846
5 United Kingdom 2,708
Rank Country Nominal GDP
6 France 2,630
7 India 2,623
8 Italy 1,886
9 Canada 1,644
10 Korea, Rep. 1,631
  1. [Source] "GDP (Current US$)" (World Bank)


Inward FDI Stock

39.7trillion yen

Japan's FDI stock in 2020 was 39.7 trillion yen, 7.4% of GDP.
  1. [Source]Ministry of Finance and Bank of Japan "International Investment Position", Cabinet Office "National Accounts of Japan"


Japan's regional economies have GDPs as big as those of other countries

Japan's economic power is not limited to Tokyo.
Japan's regional economies have GDPs as big as those of European and Asian countries.

Comparison of GDP between Japan's local regions and other countries. (U.S. $1 billion) Hokkaido/Tohoku 569.1, Sweden 555.5. Kanto 2,089.2, Brazil 1,885.5. Chubu 791.7, Turkey 778.4. Kansai 776.8, Switzerland 735.9. Chugoku 273.6, Czech Republic 249.0. Shikoku 130.2, Slovakia 105.5. Kyushu 470.2, Austria 455.1.
  1. [Source] Cabinet Office, Fiscal 2018 Prefectural Accounts, August 2021.


Evaluation by Foreign Affiliates:The Greatest Attractiveness of Japan is its market

The attractiveness of investing in Japan for companies is "the large market size" and "the potentiality to verify new products and services' competitiveness."

61.0% of foreign-affiliated companies value the size of the Japanese market.

High income levels and large customer base for
products and services
(Large market size)

61.0%

47.3% of foreign-affiliated companies say they can verify new products and services in Japan.

Sensitive to the added value and trends of products and services and can verify new products' and services' competitiveness.

47.3%

  1. [N.B.] A total of 2,468 companies responded. Respondents selected up to five “attractiveness in business development in Japan“ in the questionnaire.

    [Source] Compiled from "54th Survey of Trends in Business Activities of Foreign Affiliates (conducted in connection with business for FY2019)" (METI)


Japan aims to be the "frontrunner in solving social challenges"

As Japan faces various social issues such as the declining birthrate and aging population and regional disparities, there is a strong need for digital innovation and diverse businesses.

Japan face social challenges (such as low birth rate, aging, deflation, low productivity, regional disparities, labor shortage, aging infrastructure, natural disasters) and have high needs for business innovation and diverse businesses (telehealth, sharing, logistics efficiency improvement, disaster prevention management, construction equipment remote control, electronic approval, automatic farm management, telework).
  1. [Source]"Global Structural Changes and Japanese Responses (May 2018)" (METI)


Reason2. Innovation Hub

Industrial clusters
(Tokyo - Yokohama)

1st in the world

Reason2. Innovation Hub

Contact Us

Investing in Japan

JETRO Worldwide

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