Horizon Japan

“With nearly 40% of global GDP, Asia-Pacific is a key player in the global economy. Japan, the world’s third-largest economy, offers numerous opportunities for French companies, particularly in renewable energy, innovative healthcare, advanced digital technology, and high-end agri-food. Committed to carbon neutrality by 2050 and a leader in the digital revolution with “Society 5.0,” Japan values French expertise. The success of French companies relies on strategic partnerships and a methodical approach to the market.”

Elodie BARRIA
Regional Manager – Asia-Pacific Regional – Bpifrance

KEY FIGURES

• Population : 123,3 million inhabitants
• GPD : 4 billion (in USD)
• 4ème world economic power
• Currency : Yen
• Exchange rate regime : floating

COUNTRY RISKS

• High exposure to customs duties : the prospects for a rebound in activity in 2025, linked to a recovery in internal demand, are threatened by American customs duties and the automotive sector would be particularly affected.
• Growth vulnerability : structural weaknesses (aging population, low employment rate, falling productivity) weigh on medium-term prospects.
• Vulnerability of public accounts : Japan is committed to a very gradual reduction in its public deficit in order to reverse the upward trajectory of its significant public debt (nearly 250% of GDP).
• Climate vulnerability : Japan is exposed to natural disasters (typhoons, floods, tsunamis). Dependence on fossil fuels (which the country imports massively) exposes it to a transition risk.

AREA OPPORTUNITIES

• Banking sector : the banking sector is stable and does not present any vulnerability at this stage.
• Business climate : The business environment is very favorable in Japan, thanks to economic and political stability, strong protection of foreign investments, as well as high purchasing power.
• Semiconductors : Japan is a key player in supplying semiconductors and meeting the growing needs linked to the development of artificial intelligence or electric vehicles.
• Trade surpluses : the country has a comfortable structural current account surplus, thanks to income from its direct investments abroad.

To discover the full content, check out our edition Horizon Japan.