Macroeconomic Outlook Report: Japan

Macroeconomic Outlook Report: Japan

Summary

Mining, manufacturing, and utilities activities contributed 23.3% to the gross value added (GVA) in 2024, followed by wholesale, retail, and hotel activities (16.5%), and financial intermediation, real estate, and business activities (15.8%). In nominal terms, the three sectors are expected to grow by 2.9%, 3.9%, and 2.5%, respectively, in 2025.

In 2024, three major metropolitan areas in Japan accounted for 57.8% of the country’s GDP and 53.1% of the country’s population, according to GlobalData.

As of December 2024, Japan launched a GBP27.5 billion ($35.3 billion) extension of the Hokuriku Shinkansen, significantly enhancing travel efficiency. The new bullet train route reduces travel time from Tokyo to Fukui prefecture from three and a half hours to less than three, while also shortening trips from Osaka, Kyoto, and Nagoya by 15 to 20 minutes.

Scope

• Macroeconomic Country Outlook Reports evaluate a country's investment potential through its political, economic, social, technological, legal, and environmental (PESTLE) framework.
• This comprehensive analysis offers a holistic view of the economy, serving as a strategic tool to understand market dynamics, business potential, and operational direction. Each PESTLE factor is examined based on four parameters: current strengths, current challenges, future prospects, and future risks.
• These insights support strategic planning by highlighting opportunities and risks within the economy, helping businesses and investors make informed decisions.
• The report aims to provide a detailed understanding of the country's macroeconomic environment to facilitate effective decision-making and strategy development.

• 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.