Japan economy - class presentation

1. Asia Most Important Countries

2. Japan
The Japanese economy is one of the third largest in the world, before USA and China
The Japanese currency is the YEN

3. Japan GDP: $4.92 trillion

4. Foreign net debt
• Japan’s gross foreign assets totaled ¥797 trillion ($7.8 trillion)
• Japan's net external assets rose to a record 325 trillion yen ($3.2
trillion), making the country the world's biggest creditor nation for 23
years in a row
• Japan's net external assets were more than 1.5 times those held by
China, with 207 trillion yen in net assets at the end of 2013, followed
by Germany whose assets hit 192 trillion yen
• External debt also grew 29.1 percent to 472 trillion yen, reflecting
increased acquisition by foreign investors of Japanese equities and
other assets

5. -8.8434311
-8.3077942
-8.8103676 -8.7044768
-9.0078954
-8.3335527
-7.3044255
-6.3263476
-10
-9
-8
-7
-6
-5
-4
-3
-2
-1
0
2009 2010 2011 2012 2013 2014 2015 2016
General Government Financial
Balance

6. Types of Taxes
Corporate tax
Individual
(min)
Individual (max)
Payroll tax
(usually
reduces
taxable
income)
VAT / GST / Sales
38.01% 8%
50%
(40% national
+ 10% local)
25.63% 8% (consumption)

7. Domestic Demand
• Japan's domestic demand growing sluggishly
• Spending for durable goods (home electronics products) which
consumers replace after long intervals, has been rising
• Sales at department stores have been supported mainly by the
affluent in urban areas and foreign tourists
• Capital investment by companies has also been sluggish. But actual
investment has not increased.

8. International Demand
• The first positive growth in Japan’s GDP was the result mainly of
overseas demand, such as for automobiles in the United States
• Exports to the United States and China worked positively [for the GDP
growth rate]
• Due to the yen’s depreciation, dollar-denominated profits from sales
overseas yielded higher returns in yen after the currencies were
exchanged

9. Export > Import

10. International Demand
• Exports: Japan's main export goods are cars, electronic devices and
computers.
• Most important trade partners are China and the USA, followed by South
Korea, Taiwan, Hong Kong, Singapore, Thailand and Germany.
• Imports: The most important import goods are raw materials such as
oil, foodstuffs and wood.
• Major supplier is China, followed by the USA, Australia, Saudi Arabia, South
Korea, Indonesia and the United Arab Emirates.

11. Future Prediction
• Recovery of domestic demand still remains slow
• Due to the future economic conditions of European countries, China
and other countries are uncertain
• It is possible that an increase in exports by Japanese companies may slow
down
• The depreciation of YEN can possibly persist
• Company get higher returns in US dollar
• Low crude oil prices are expected to provide a tailwind for the
economy