Analysis and Studies - Country Analysis
Japan: a look at the market
November 20th 2023
Japan is an island country, situated in the East of Asia. It’s bordered on the west by the Sea of Japan, extending from the Sea of Okhotsk in the north toward the East China Sea and Taiwan in the south.
Japan has over 125 million inhabitants and is the 11th most populous country in the world, as well as one of the most country populated. About ¾ of the country's terrain is mountainous, focusing its highly urbanized population on narrow prairie. Japan is divided into 47 administrative directorships and eight traditional regions. The Greater Tokyo Area is the most populous metropolitan area in the world.
Further to this, , Japan is one of the G4 nations hunting reform of the Security Council. Japan is a member of the G7, APEC (it’s Asia-Pacific Economic Cooperation, an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade all over the Asia-Pacific region, and "ASEAN Plus Three", and is an associate in the East Asia Summit.
It’s the world's fifth-largest benefactress of official development assistance, make a contribution of US$9.2 billion in 2014.
In 2021, Japan had the fourth-largest tactful network in the world.
A look at the market
About population, Japan is one of the most populated country in the world and about economy, it’s the 4th largest economy in the world by nominal GDP, after United States, China and Germany; and it’s the 4th largest economy by PPP.
In 2021 the top exports of Japan were Cars ($88.6B), Motor Vehicles ($33.4B), Integrated Circuits ($36B), Photo Lab Equipment ($18.5B), exporting mostly to China, United States, South Korea and Thailand.
On the other side, the top imports of japan are Crude Petroleum ($54.9B), Petroleum Gas ($40.2B), Integrated Circuits ($22.7B), Coal Briquettes ($22.2B), and Refined Petroleum ($18.1B), importing mostly from China ($168B), United States ($71.8B), Australia ($47B), Chinese Taipei ($30.2B), and South Korea ($30.1B).
In the same year, Japan was the world’s biggest importer of Other Prepared Meat, Processed Tobacco and Sulfates.
Instead, in 2023, the exports partner of Japan were from Aichi (¥1.62T), Chiba (¥1.3T), Osaka (¥967B), Kanagawa (¥792B), and Hyōgo (¥669B), while the partner imports destinations were mainly Chiba (¥2.04T), Tokyo (¥1.36T), Osaka (¥1.01T), Aichi (¥813B), and Kanagawa (¥809B).
Particulary, Japan has a high level of specialization in Photographic Chemicals (14.9), Blown Glass (14.1), Watch Movements (11.7), Pianos (10.5), and Metalworking Transfer Machines (8.83). Specialization is measured using RCA, an index that takes the ratio between Japan observed and expected exports in each product.