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
Economic growth is projected to reach 1¼ per cent in 2018 and 2019, supported by exports, business investment and private consumption. In addition to buoyant international trade, firms facing labour shortages will increase business investment and employment. Wages are projected to edge up, although the gains to households will be partially offset by higher inflation, which is expected to rise to 1½ per cent in 2019. The current account surplus is projected to remain close to 4% of GDP through 2019.
Government debt relative to GDP is the highest ever recorded in the OECD area, which poses serious risks. Achieving fiscal sustainability requires a detailed consolidation programme that includes measures to control spending in the face of rapid ageing, and gradual hikes in the consumption tax rate, beginning with the planned increase in 2019. The Bank of Japan is expected to maintain its expansionary monetary policy until the 2% inflation target is achieved, which is appropriate. Continued structural reforms to boost productivity and sustain employment are also a priority to achieve fiscal sustainability and improve well-being.
Source: OECD - Economic Forecast
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|Inflation, average consumer prices|
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Source: IMF Statistics
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.
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Embassy of the Grand Duchy of Luxembourg in Japan
Ambassador: Mrs Béatrice KIRSCH
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
Kyoto 604-8511 - Japan
Tel: (+81) 75 823 1000
Fax: (+81) 75 823 1040
Honorary Consul General with jurisdiction in 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
Luxembourg Trade and Investment Office in Japan
Mrs Yuriko MATSUNO
Luxembourg House 1F
8-9 Yonbancho Chiyoda-ku
Tokyo 102-0081 JAPAN
Tel.: (+81) (0) 3 3265 9621
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.