Japan
 

Your advisors at the Chamber of Commerce

Na Shi

+352423939364

Contact us: japan@cc.lu

Key indicators

Area

377,915 km2

Population

126 million (2022)

Government type

Parliamentary constitutional monarchy

Languages

Japanese

GDP

$5.862 trillion (2022 est.)

Growth rate

-1.6% (2022 est.)

HDI

19

Capital

Tokyo

Macroeconomic indicators

The economy of Japan is a highly developed social market economy, often referred to as an East Asian model. It is the 4th-largest economy in the world by nominal GDP behind the United States, China, and Germany and the 4th-largest by purchasing power parity (PPP), its per capita GDP was at $52,120 (2023). 

Due to a volatile currency exchange rate, Japan's GDP as measured in dollars fluctuates sharply. The Japanese economy is forecast by the Quarterly Tankan survey of business sentiment conducted by the Bank of Japan.

The Nikkei 225 presents the monthly report of top blue-chip equities on the Japan Exchange Group, which is the world's fifth-largest stock exchange by market capitalisation.

In 2018, Japan was the world's fourth-largest importer and the fourth-largest exporter. It has the world's second-largest foreign-exchange reserves, worth $1.4 trillion. It ranks 5th on the Global Competitiveness Report. It ranks first in the world in the Economic Complexity Index. Japan is also the world's fourth-largest consumer market. 

Japan is the world's second-largest automobile manufacturing country. It is often ranked among the world's most innovative countries, leading several measures of global patent filings. Facing increasing competition from China and South Korea, manufacturing in Japan currently focuses primarily on high-tech and precision goods, such as integrated circuits, hybrid vehicles, and robotics.  

Besides the Kantō region, the Kansai region, where the World Expo 2025 will be held, is one of the leading industrial clusters and manufacturing centers for the Japanese economy.  

Japan is the world's largest creditor nation. Japan generally runs an annual trade surplus and has a considerable net international investment surplus. Japan has the third-largest financial assets in the world, valued at $12 trillion, or 8.6% of the global GDP total as of 2020. As of 2022, 47 of the Fortune Global 500 companies are based in Japan. The country is the third largest in the world by total wealth.

As of 2021, Japan has significantly higher levels of public debt than any other developed nation at approximately 260% of GDP. 45% of this debt is held by the Bank of Japan. The Japanese economy faces considerable challenges posed by an aging and declining population, which peaked at 128 million in 2010 and has fallen to 125.5 million as of 2022. Projections show the population will continue to fall, potentially to below 100 million by the middle of the 21st century. 

Source: OECD - Economic Forecast

IMF Statistics:

Source: IMF Statistics

Relationships with Luxembourg

Existing conventions and agreements

Non double taxation agreement

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

• Convention from 05.03.1992 (Memorial 1992, A No.88, p.2523)
• Effective as of 01.01.1993 (Memorial 1992, A No.88, p.2523)
• Amendment of the Convention from 25.01.2010 (Memorial 2011, A No.146, p.2025)
• Effective as of 30.12.2011 (Memorial 2011, A No.146, p.2025)

Luxembourg Chamber of Commerce and national innovation agency Luxinnovation signed memorandums of cooperation with Japan External Trade Organisation.

Air Services agreement

None

Source: Administration des contributions directes

Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact points in Japan

Embassy of the Grand Duchy of Luxembourg in Japan

Ambassador with residence in Tokyo: Mr Pierre FERRING

Luxembourg House 1F
8-9 Chiyoda-Ku Yonbancho
Tokyo 102-0081
Japan

Tel.: (+81) 3 32 65 96 21
Fax: (+81) 3 32 65 96 24
E-Mail: tokyo.amb@mae.etat.lu
Website: http://tokyo.mae.lu
 

Honorary Consuls

Honorary Consul with jurisdiction over the Prefectures of Osaka, Mie, Nara, Wakayama, Shiga, Kyoto, and Hyogo: 

Mr Shigehiko HATTORI

c/o Shimadzu Corporation
1, Nishinokyo, Kuwabana-cho
Nakagyo-ku
604-8511 Kyoto
Japan

Tel.: (+81) 75 823 1000

Honorary Consul General with jurisdiction over Tokyo:

Mr Hajime SAWABE

TDK Corporation
3-9-1 Shibaura,
Minatu-Ku
108-0023 Tokyo
Japan

Tel.: (+81) 3 52 01-7111
E-Mail: ytabuchi@jp.tdk.com 
 

Luxembourg Trade and Investment Office in Japan

Ms Yuriko MATSUNO

Luxembourg House 1F 
8-9 Yonbancho Chiyoda-ku 
Tokyo 102-0081
Japan

Tel.: (+81) (0) 3 3265 9621
E-Mail: tiotokyo@mae.etat.lu

Source: Ministry of Foreign Affairs Luxembourg
 

Country risk as defined by Office du Ducroire for Japan

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for Japan

Other useful links

• CIA World Factbook on Japan
• Belgium-Luxembourg Chamber of Commerce in Japan
• Ambassade du Japon au Luxembourg
• Investing in Japan (JETRO)
• Le Japon sur le site de Switzerland Global Enterprise
• Economic Freedom Index - Japan
• EU-Japan Centre for Industrial Cooperation
• Doing Business in Japan
• Tokyo One-Stop Business Establishment Center
• Export to Japan

Chamber of Commerce and the country