The essential economic performance of a country is reflected by the gross domestic product, the total of all goods and services sold. Worldwide gross domestic product in 2022 was at about 12,607 USD per capita. GDP in Japan, on the other hand, reached USD 33,815 per capita, or 4.231 trillion USD for the whole country. Japan is one of the world's largest economies and is currently at rank 3. If this is calculated per inhabitant, taking purchasing power parity into account, then Japan is in the list of the world's richest countries in place 38.
Inflation in Japan in 2022 was around 2.50%. Within the EU, the average in the same year was 8.83 percent. In the United States, it was most recently 8.00%.
The index for perceived corruption in the public sector is 73, which is above average by global standards.
Impact of the COVID-19 pandemic
Overall, the gross domestic product in Japan in 2020 decreased moderatly from 5.118 trillion US dollars to 5.049 trillion US dollars. Certainly, there have been shifts in some sectors of the economy, but a drop of 1.4 percent is still comparatively good this year. Numerous countries suffered more substantial losses. The tourism sector alone slumped by around 77 percent. The unemployment rate rose from 2.4 to 2.8 percent. The country's gross debt increased by 5.8 percent. The inflation rate fell from 0.5 percent previously to zero percent by the end of 2020.
In 2021, gross domestic product declined again, falling to 5.006 trillion U.S. dollars (=97.8% of 2019).
Income and purchasing power
The average monthly income in Japan is 3,537 US Dollar per capita. In the USA, the figure is 6,364 US Dollar. However, the prices of consumer goods are also around 15.1 percent lower than in the USA. If you compare income and price levels, the result is a more expensive life in Japan than in the United States. The bottom line is that the costs do not offset the lower income, and you get about 34.6 percent less.
However, it is also important to remember that this is a purely statistical model. Both the labor output and the type and quality of the goods received always correspond to the national average on both sides of the equation - so they do not necessarily have to match. Here you can also find an international comparison of cost of living and purchasing power.
The income tax payable in Japan on all income is very low compared to other OECD countries. A married couple with 2 children and normal average income pays on average 7.2% income tax. The total tax burden including social security contributions but excluding employer contributions is 18.8%. The top tax rate is 55.9 percent. Please also read our country comparison of income tax.
Unemployment rates in percentages 1991 - 2022
Economic performance 2022
| Indicator | Japan Total | Japan per capita | EU Total | EU per capita |
|---|---|---|---|---|
| GDP | 4.231 tn USD | 33,815.32 USD | 16.641 tn USD | 32,317.93 USD |
| Gross national product | 5.310 tn USD | 42,437.79 USD | 17.773 tn USD | 34,515.94 USD |
In the Global Innovation Index, Japan ranked 13th in 2022 with 53.6 points. The index is calculated annually by the World Intellectual Property Organization (WIPO) and most recently included 132 countries. The top country was Switzerland with 64.6 points. Out of the 2,000 largest listed companies in the world, 196 originate from Japan. This is determined annually in the Forbes Global 2000 list. The 10 largest companies in the country in 2022 were:
Rank 10: Toyota Motor (Toyota)
Rank 44: Softbank (Tokyo)
Rank 53: Nippon Telegraph & Tel (Tokyo)
Rank 56: Sony (Tokyo )
Rank 58: Mitsubishi UFJ Financial (Tokyo)
Rank 103: Honda Motor (Tokyo)
Rank 104: Mitsubishi (Tokyo)
Rank 127: Sumitomo Mitsui Financial (Tokyo)
Rank 140: Mitsui (Tokyo)
Rank 141: Itochu (Tokyo)
Development of gross domestic product in billions of USD 1960 - 2022
Largest industries
- Motor vehicles
- Electronic equipment
- Machine tools
- Steel and nonferrous metals
- Ships
- Chemicals
- Textiles
- Processed foods
Household debt and deficits 2022
| Indicator | Japan Total | Japan per capita | EU Total | EU per capita |
|---|---|---|---|---|
| Government debts | 11.055 tn USD | 88,355.64 USD | 43.482 tn USD | 84,443.15 USD |
› Debt budget development
› Development of inflation
› Corruption in Japan
› Cost of living in a global comparison
Imports and Exports 2022
| Indicator | Japan Total | Japan per capita | EU Total | EU per capita |
|---|---|---|---|---|
| Imports | 1.080 tn USD | 8,630.43 USD | 9.107 tn USD | 17,686.13 USD |
| Exports | 921.21 bn USD | 7,362.33 USD | 9.404 tn USD | 18,262.76 USD |
Development of imports and exports in billions of USD 1996 - 2022
Exports
Imports
Largest airports and airlines in JapanThe 30 biggest airports in Japan and 8 airlines with further information and data
Comparison of income tax by countryThis is how much income tax and social security contributions you pay in these 39 countries
List of the 13 current Pariah States13 countries, that suffer from the sanctions of the international community because of their mostly autocratic government.
As a seasoned economic analyst and enthusiast with a robust understanding of global economic indicators, I delve into the intricate details of the economic performance of countries. My expertise is not merely theoretical; I possess a comprehensive grasp of economic concepts backed by extensive research and analysis. Let's navigate through the information provided in the article, dissecting key economic indicators and shedding light on the nuances of Japan's economic landscape.
Gross Domestic Product (GDP): The article emphasizes the centrality of GDP as a barometer of economic health. Japan's GDP in 2022 stood at an impressive USD 33,815 per capita, contributing to a total of USD 4.231 trillion for the entire country. This robust performance secures Japan's position as the world's third-largest economy. The significance of adjusting these figures for purchasing power parity is highlighted, placing Japan among the world's wealthiest nations, albeit at the 38th position.
Inflation: In 2022, Japan reported a moderate inflation rate of around 2.50%, a figure notably lower than the EU's average of 8.83% and the United States' 8.00%. This underlines Japan's economic stability, as lower inflation rates generally indicate controlled price levels.
Corruption Index: The index for perceived corruption in Japan is reported at 73, surpassing global averages. While corruption is a concern, Japan's score indicates a level of transparency above the global mean.
Impact of COVID-19: Despite the challenges posed by the COVID-19 pandemic, Japan exhibited resilience in its economic performance. The GDP decreased by a modest 1.4% in 2020, showcasing the country's ability to weather the storm better than many counterparts. The tourism sector bore the brunt with a 77% slump, and the unemployment rate rose slightly from 2.4% to 2.8%.
Income and Purchasing Power: The average monthly income in Japan is reported at USD 3,537 per capita, significantly lower than the USA's USD 6,364. However, when factoring in the 15.1% lower consumer goods prices in Japan, the cost of living in Japan is still higher, resulting in approximately 34.6% less purchasing power compared to the United States.
Taxation: Japan's income tax system is highlighted, emphasizing a relatively low burden. A married couple with 2 children and an average income pays an average income tax of 7.2%, with the total tax burden (including social security contributions but excluding employer contributions) standing at 18.8%.
Global Innovation Index: Japan ranks 13th in the Global Innovation Index for 2022, showcasing its prowess in fostering innovation. This index, compiled by the World Intellectual Property Organization, positions Japan as a leading nation in technological advancement.
Top Companies: The Forbes Global 2000 list reveals that 196 of the world's largest listed companies hail from Japan. Notable companies include Toyota Motor, Softbank, and Sony, highlighting Japan's significant presence in global business.
Imports and Exports: Japan's economic prowess is further evidenced by its substantial import and export figures. In 2022, Japan imported goods worth USD 1.080 trillion and exported goods totaling USD 921.21 billion. These figures underscore Japan's active participation in international trade.
Government Debts: Japan's government debts are reported at USD 11.055 trillion, resulting in a per capita debt of USD 88,355.64. While substantial, this figure should be considered in the context of the country's overall economic performance.
This comprehensive overview reflects the intricate web of economic indicators that shape Japan's economic narrative, showcasing its strengths, challenges, and global standing.
