<hdr>The World Factbook 1994: Japan<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation have helped Japan advance with extraordinary rapidity to the rank of second most powerful economy in the world. Industry, the most important sector of the economy, is heavily dependent on imported raw materials and fuels. Self-sufficient in rice, Japan must import about 50% of its requirements of other grain and fodder crops. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. Overall economic growth has been spectacular: a 10% average in the 1960s, a 5% average in the 1970s and 1980s. Economic growth came to a halt in 1992-93 largely because of contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets. At the same time, the stronger yen and slower global growth are containing export growth. Unemployment and inflation remain remarkably low in comparison with the other industrialized nations. Japan continues to run a huge trade surplus—$120 billion in 1993, up more than 10% from the year earlier—which supports extensive investment in foreign assets. The new prime minister HATA in early 1994 reiterated previous governments' vows of administrative and economic reform, including reduction in the trade surplus, but his weak coalition government faces strong resistance from traditional interest groups. The crowding of the habitable land area and the aging of the population are two major long-run problems.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$2.549 trillion (1993)
<item><hi format=bold>National product real growth rate:</hi> 0% (1993)
<item><hi format=bold>National product per capita:</hi> $20,400 (1993)
<item>• <hi format=ital>consumption per capita:</hi> 6,700 kWh (1992)
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<item><hi format=bold>Industries:</hi> steel and non-ferrous metallurgy, heavy electrical equipment, construction and mining equipment, motor vehicles and parts, electronic and telecommunication equipment and components, machine tools and automated production systems, locomotives and railroad rolling stock, shipbuilding, chemicals, textiles, food processing
<item><hi format=bold>Agriculture:</hi> accounts for only 2% of GDP; highly subsidized and protected sector, with crop yields among highest in world; principal crops—rice, sugar beets, vegetables, fruit; animal products include pork, poultry, dairy and eggs; about 50% self-sufficient in food production; shortages of wheat, corn, soybeans; world's largest fish catch of 10 million metric tons in 1991
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>donor:</hi> ODA and OOF commitments (1970-93), $123 billion
<item>• <hi format=ital>note:</hi> ODA outlay of $9.9 billion in 1994 (est.)
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<item><hi format=bold>Currency:</hi> yen (Y)
<item><hi format=bold>Exchange rates:</hi> yen (Y) per US$1—111.51 (January 1994), 111.20 (1993), 126.65 (1992), 134.71 (1991), 144.79 (1990), 137.96 (1989)
<item><hi format=bold>Fiscal year:</hi> 1 April–31 March
