Overview: Although Japan has few natural resources, since 1971 it has become the world's third-largest industrial economy, ranking behind only the US and the USSR. Government-industry cooperation, a strong work ethic, and a comparatively small defense allocation have helped Japan advance rapidly, notably in high technology fields. Industry is the most important sector of the economy, but is heavily dependent on imported raw materials and fuels. Self-sufficent in rice, Japan must import 50% of its requirements for other grain and fodder crops. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the total global catch. During 1988 the economy completed its adjustment to the doubling in value of the yen since 1985, leading to increases in Japan's global trade surplus in the latter part of the year. Inflation remains under 1% as the strong yen dampens domestic prices.

GNP: $1,843 billion, per capita $15,030; real growth rate 4.8% (1988)

Inflation rate (consumer prices): 0.7% (1988)

Unemployment rate: 2.5% (1988)

Budget: revenues $349 billion; expenditures $433 billion, including capital expenditures of NA (FY88)

Exports: $231.2 billion (f.o.b., 1987); @m5commodities--manufactures 97% (including machinery 33%, motor vehicles 26%, consumer electronics 8%); @m5partners--US 38%, Southeast Asia 20%, Western Europe 18%, Communist countries 7%, Middle East 5%

Imports: $150.8 billion (c.i.f., 1987); @m5commodities--manufactures 34%, fossil fuels 31%, foodstuffs 18%, nonfuel raw materials 16%; @m5partners--Southeast Asia 23%, US 23%, Middle East 15%, Western Europe 14%, Communist countries 7%

External debt: $NA

Industrial production: growth rate 3.4% (1987)

Electricity: 188,000,000 kW capacity; 696,000 million kWh produced, 5,680 kWh per capita (1988)

Industries: metallurgy, engineering, electrical and electronic, textiles, chemicals, automobiles, fishing

Agriculture: land intensively cultivated; rice, sugar, vegetables, fruits; 71% self-sufficient in food (1985); food shortages--wheat, corn, beans

Aid: donor--ODA and OOF commitments (1970-86), $45.2 billion

Currency: yen (plural--yen); 1 yen (Y) = 100 sen

Exchange rates: yen (Y) per US$1--127.23 (January 1989), 128.15 (1988), 144.64 (1987), 168.52 (1986), 238.54 (1985)

Fiscal year: 1 April-31 March

NOTE: The information regarding Japan on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Japan Economy 1989 information contained here. All suggestions for corrections of any errors about Japan Economy 1989 should be addressed to the CIA.