Chamber of Commerce Country Factsheet Last update: 10.01.2018
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In 1603, after decades of civil warfare, the Tokugawa shogunate (a military-led, dynastic government) ushered in a long period of relative political stability and isolation from foreign influence. For more than two centuries this policy enabled Japan to enjoy a flowering of its indigenous culture. Japan opened its ports after signing the Treaty of Kanagawa with the US in 1854 and began to intensively modernize and industrialize. During the late 19th and early 20th centuries, Japan became a regional power that was able to defeat the forces of both China and Russia. It occupied Korea, Formosa (Taiwan), and southern Sakhalin Island. In 1931-32 Japan occupied Manchuria, and in 1937 it launched a full-scale invasion of China. Japan attacked US forces in 1941 - triggering America's entry into World War II - and soon occupied much of East and Southeast Asia. After its defeat in World War II, Japan recovered to become an economic power and an ally of the US. While the emperor retains his throne as a symbol of national unity, elected politicians hold actual decision-making power. Following three decades of unprecedented growth, Japan's economy experienced a major slowdown starting in the 1990s, but the country remains an economic power. In March 2011, Japan's strongest-ever earthquake, and an accompanying tsunami, devastated the northeast part of Honshu island, killed thousands, and damaged several nuclear power plants. The catastrophe hobbled the country's economy and its energy infrastructure, and tested its ability to deal with humanitarian disasters. Prime Minister Shinzo ABE was reelected to office in December 2012, and has since embarked on ambitious economic and security reforms to improve Japan's economy and bolster the country's international standing.
Source: The CIA World Factbook - Japan
Output growth has been slowed by a drop in demand from China and other Asian countries and by sluggish private consumption. Growth is projected to be around 0.7% in 2016 and 0.4% in 2017, as labour and capacity shortages and record-high corporate profits support business investment, employment and wages. The impact of the consumption tax hike planned for 2017 is expected to be partially offset by a pick-up in exports.
Raising output growth is essential to reduce the ratio of public debt to GDP, which will reach 234% in 2017. To achieve a primary budget surplus and maintain confidence in Japan’s public finances, it is necessary to implement a more detailed and concrete strategy to reduce spending and raise revenue, including by gradual increases in the consumption tax rate. Continuing the quantitative and qualitative easing policy until the 2% inflation target has been sustainably achieved is also necessary.
Structural reform to raise productivity is fundamental to long-term growth. Narrowing the productivity gap with the top half of OECD countries requires bold reforms, such as enhancing trade integration through the Trans-Pacific Partnership and other agreements, and increasing business-sector dynamism through improved corporate governance and regulatory reform. Boosting investment in knowledge-based capital, such as vocational education and training, is also essential to spur productivity growth.
Source: OECD - Economic Forecast
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices -0.028 0.539 0.510 0.563 0.453 Gross domestic product, current prices 4,595.519 4,124.211 4,730.300 5,106.259 5,230.423 Gross domestic product per capita, current prices 36,151.176 32,478.897 37,304.140 40,408.359 41,550.889 Inflation, average consumer prices 2.761 0.792 -0.162 0.494 0.626 Volume of imports of goods and services 7.242 0.308 -0.824 2.264 2.561 Volume of exports of goods and services 8.317 2.799 -1.437 0.639 2.030 Unemployment rate 3.583 3.367 3.183 3.197 3.197 Current account balance 36.477 135.580 176.098 171.024 174.604 Current account balance 0.794 3.287 3.723 3.349 3.338
Source: IMF Statistics
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 03.05.1992 (Memorial 1992, A, p. 2523)
- Effective as of 27.12.1992 (Memorial 1992, A, p. 3164)
- Protocol and Exchange of letters from 25.01.2010
- Law from 16.07.2011 (Memorial 2011, A, no. 146, p. And 2024)
- Effective as of 30.12.2011
Air Services agreement
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Japan
Embassy of the Grand Duchy of Luxembourg in Japan
He Mrs Béatrice KIRSCH
Luxembourg Trade and Investment Office in Japan
Honorary Consul with jurisdiction in the prefectures of Osaka, Mie, Nara, Wakayama, Shiga, Kyoto and Hyogo:
Mr. Shigehiko HATTORI
c/o Shimadzu Corporation
1, Nishinokyo, Kuwabana-cho, Nakagyo-ku
Tel: +81 75 823 1000
Fax: +81 75 823 1040
Honorary Consul General with jurisdiction in Japan (Tokyo):
Mr. Hajime Sawabe
13-1 Nihonbashi 1-chome
Tokyo 103-8272 Japan
Tel: (+81) 3 52 01-7111
Fax: (+81) 3 52 01-7112
Country risk as defined by Office du Ducroire for Japan
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Other useful links
- Market watch Japon - septembre 2017
- CIA World Factbook on Japan
- Belgium-Luxembourg Chamber of Commerce in Japan
- Ambassade du Japon au Luxembourg
- Investing in Japan (JETRO)
- EU gateway to Japan
- Le Japon sur le site de l'Awex
- Le Japon sur le site de Switzerland Global Enterprise
- Economic Freedom Index - Japan
- EU-Japan Centre for Industrial Cooperation
- Nippon Export Award 2015
- Doing Business in Japan
- Tokyo Business Development Center
- Tokyo One-Stop Business Establishment Center
- Export to Japan
The Chamber of Commerce and the country