The Economy of Japan

Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan advance with extraordinary rapidity.

Japan's industrial sector is heavily dependent on imported raw materials and fuels. Japan is among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, and processed foods.

Comparatively, the agricultural sector is small. It is highly subsidized and protected, with crop yields among the highest in the world. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch.

Although, economic growth was slow in the 1990s, it recently improved again. Japan's huge government debt, which totals 176% of GDP, and the aging of the population are two major long-run problems.

The currency of Japan is the Yen.