Capital City: Tokyo
	It is %T:%M %A in Tokyo

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Economic trends

After a 2.4% growth rate in 2005, the GDP was growing each year a little bit slighter: +2.2% in 2006, +2.3% in 2007. A slowdown at 1.9% is forecasted for 2008, according to FMI.
With current account in surplus, trades sustain the economic growth. Imports benefit from the appreciation of the Yen. Exports benefit from the good business environment in the United-States and in Asia, and more precisely in China. Household consumption contributes also to the economic dynamic, improved by an increase of the wages.
The general government balance has a huge deficit, and the level of the general government gross debt is quite significant, representing respectively 3,7% and 184% of the GDP. For these reason, the government has announced a restriction of the budgetary and monetary policy.
Unemployment has decreased since 2003 and touches nearly 4.0% of the active population nowadays.

Main branches of industry

Japan has few natural resources, but deposits of gold, magnesium, coal, and silver meet Japan's current industrial demands. Fishery is also a very important economic activity. Only 15% of Japan's land is suitable for cultivation. Tea and rice are the two main crops. The agricultural economy is highly subsidized and protected. Agriculture contributes only 1.3% to the GDP and employs 7% of the active population.
The industrial sector is well diversified. Japanese firms produce basic products (steel, paper), as well as most advance technological goods. Japan is also the world's second producer of cars and ships. The industrial sector contributes nearly 30% to the GDP. Some sectors such as automobiles, robotics, micro-technology are very competitive.
The service sector accounts for nearly 68% of the GDP.

International trade

Foreign trade is an essential element of the Japanese economy. On January 1st 2007, Japan was the 5th greatest exporter in the world and the 6th greatest importer in the world.
Its top three export partners are: the USA, China and South Korea. The commodities mainly exported are vehicles, electric equipment, machinery and optical &measuring equipment.
The top three import partners are: China, the USA, and Saudi Arabia. The Commodities mainly imported are mineral fuels &oils, electronic components, machinery, optical products and minerals.