Macroeconomic Outlook Report: Japan

Macroeconomic Outlook Report: Japan

Summary

Financial intermediation, real estate and business activities contributed 25.1% to the gross value added (GVA) in 2023, followed by mining, manufacturing and utilities activities (23.4%), wholesale, retail and hotels activities (14.8%). In nominal terms, the three sectors are expected to grow by 3.3%, 3.2% and 2.7%, respectively, in 2024.

Three major metropolitan areas in Japan generated 64.6% of the country’s GDP in 2023, and comprised 48.4% of the country’s population, in 2023, according to GlobalData.

The NIKKEI 225 index has been on an upward trend. As of May 01, 2024, the index stood at 38,274.1, compared to 25,820.8 on May 01, 2023. Japan's stock market, historically stagnant, is now booming with the Nikkei 225 index hitting a 34-year high. In 2023, it outperformed the S&P 500, with a 28.2% gain, and continued to surge in the first three months of 2024. With signs of economic recovery, including wage increases, and China's market challenges, Japanese stocks remain attractive.

Scope

• According to the World Bank, Logistics Performance Index (2023), Japan was ranked 13th out of 139 nations in 2023.

Reasons to Buy

• Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
• PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
• Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
• This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.