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Japan
 

Japan is a leading economic and technological power in East Asia, renowned for its unique combination of ancient traditions and cutting-edge modernity. The country’s rich cultural heritage is reflected in centuries-old customs, including tea ceremonies, historic temples, shrines, and seasonal festivals, while its contemporary society is known for innovation, efficiency, and creativity. Japan’s urban landscapes – from the neon-lit skyscrapers of Tokyo to the historic streets of Kyoto – exemplify this fusion of tradition and progress.

The country is also a global cultural and commercial influencer. Japanese cuisine, animation, fashion, design, and lifestyle brands enjoy worldwide recognition, contributing to soft power and opening avenues for international engagement. Its education system, infrastructure, and focus on quality and craftsmanship have fostered a highly skilled workforce and an economy capable of producing world-class goods and services. Japan’s strategic geographic location and advanced transport networks further support trade, tourism, and international business activity. 



Your advisors at the Chamber of Commerce

Na Shi

+352423939364

Contact us: japan@cc.lu

Key indicators

Area
377,930 km2
Population
123,8 million (2024 est.)
Government type
Parliamentary constitutional monarchy
Languages
Japanese
GDP
USD 4.3 trillion (2024–2025 est.)
Growth rate
+1.0% (2024–2025 est.)
HDI
0.960
Capital
Tokyo

Macroeconomic indicators

Japan has a highly developed social market economy, ranking among the world’s top four economies by both nominal GDP and purchasing power parity (PPP). Its GDP per capita is among the highest globally, reflecting strong productivity, technological sophistication, and a diverse, affluent domestic market. As one of the world’s largest exporters and importers, Japan holds substantial foreign-exchange reserves and maintains a strong net international investment position, highlighting its role as a global financial and trading hub.

Manufacturing remains a cornerstone of Japan’s economy, particularly in automotive production, electronics, robotics, high-precision machinery, and advanced materials. In response to competition from regional peers, Japan has increasingly focused on high-value-added and technology-intensive sectors, including semiconductors, hybrid and electric vehicles, artificial intelligence, green technologies, and biotechnology. Industrial clusters in the Tokyo–Yokohama and Kansai regions — the latter hosting World Expo 2025 in Osaka – are central to innovation, R&D, and investment opportunities.

Japan also exhibits strong innovation capacity, consistently ranking among the most patent-intensive and R&D-driven economies globally. The Japan Exchange Group (JPX), with its flagship Nikkei 225 index, provides a transparent view of market activity and corporate performance.

Despite these strengths, Japan faces structural challenges, including a rapidly ageing and declining population and high public debt, which together impact long-term economic growth, labour supply, and public finances. Policymakers and businesses are adapting strategies to maintain competitiveness, enhance productivity, and foster sustainable development.

Source: OECD - Economic Forecast

IMF Statistics:

Subject descriptor 2023 2024 2025 2026 2027

All Items, Consumer price index (CPI), Period average, percent change

Percent

(Units)

3.268

2.739

3.287

2.144

2.012

Current account balance (credit less debit), Percent of GDP

Percent

(Units)

3.707

4.818

3.901

3.63

3.616

Current account balance (credit less debit), US dollar

US dollar

(Billions)

155.878

193.665

166.937

162.02

167.229

Exports of goods and services, Volume, Free on board (FOB), Percent change

Percent

(Units)

3.268

1.124

2.927

0.943

1.366

Gross domestic product (GDP), Constant prices, Percent change

Percent

(Units)

1.245

0.104

1.076

0.633

0.634

Gross domestic product (GDP), Current prices, Per capita, US dollar

US dollar

(Units)

33776.442

32443.024

34713.248

36391.381

37902.727

Gross domestic product (GDP), Current prices, US dollar

US dollar

(Billions)

4204.573

4019.382

4279.828

4463.634

4624.079

Imports of goods and services, Volume, Cost insurance freight (CIF), Percent change

Percent

(Units)

-0.848

0.972

3.635

1.844

1.605

Unemployment rate

2.575

2.567

2.567

2.567

2.567
Estimates

Source: IMF Statistics

Relationships with Luxembourg

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 05.03.1992 (Memorial 1992, A No.88, p.2523)

  • Effective as of 01.01.1993 (Memorial 1992, A No.88, p.2523)

  • Amendment of the Convention from 25.01.2010 (Memorial 2011, A No.146, p.2025)

  • Effective as of 30.12.2011 (Memorial 2011, A No.146, p.2025)

Luxembourg Chamber of Commerce and national innovation agency Luxinnovation signed memorandums of cooperation with Japan External Trade Organisation.

Air Services agreement

None

Source: Administration des contributions directes

Further information

Foreign Trade

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

Ambassador with residence in Tokyo: Mr. Michel LEESCH

Luxembourg House 1F
8-9 Chiyoda-Ku Yonbancho
Tokyo 102-0081
Japan

Tel.: (+81) 3 32 65 96 21
Fax: (+81) 3 32 65 96 24
E-Mail: tokyo.amb@mae.etat.lu
Website: http://tokyo.mae.lu
 

Honorary Consuls

Honorary Consul with jurisdiction over the Prefectures of Osaka, Mie, Nara, Wakayama, Shiga, Kyoto, and Hyogo: 

Mr Shigehiko HATTORI

c/o Shimadzu Corporation
1, Nishinokyo, Kuwabana-cho
Nakagyo-ku
604-8511 Kyoto
Japan

Tel.: (+81) 75 823 1000

Honorary Consul General with jurisdiction over Tokyo:

Mr Hajime SAWABE

TDK Corporation
3-9-1 Shibaura,
Minatu-Ku
108-0023 Tokyo
Japan

Tel.: (+81) 3 52 01-7111
E-Mail: ytabuchi@jp.tdk.com 
 

Luxembourg Trade and Investment Office in Japan

Ms Yuriko MATSUNO

Luxembourg House 1F 
8-9 Yonbancho Chiyoda-ku 
Tokyo 102-0081
Japan

Tel.: (+81) (0) 3 3265 9621
E-Mail: tiotokyo@mae.etat.lu

Source: Ministry of Foreign Affairs Luxembourg
 

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.

Link: Ducroire Office - Country Risk for Japan

Other useful links

Chamber of Commerce and the country

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