Japan Market Update
April 2010
John E. Peters
Minister-Counselor for Commercial Affairs
US Embassy, Tokyo
US Commercial Service - Japan
Outline
US Commercial Service - Japan
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• Economic and Trade Indicators
• Demographics and Savings
• US – Japan Trade
• Selected Opportunities
• Policy Issues and Challenges
• Regional Market
• Commercial Service - Japan
Economic and Trade Indicators
US Commercial Service - Japan
3
"Exports and production have been picking up on the back of a rapid recovery in the
Chinese and other Asian economies... business sentiment in Japan has begun to
improve... Though the recovery is slower in Japan than in the U.S. and in other
Asian countries, the economy is likely to improve gradually, given that capital
investment and personal spending in the U.S. have been turning up."
March 23, 2010
Fujio Mitarai, Chairman of the Japan Business Federation
"We have on the one hand a very serious fiscal situation, and on the other a very
severe economic situation...within the Cabinet there are strong calls even now for
further mobilising government finances...Yet, the cost of social security is growing
by one trillion yen annually, with vast increases in the cost of medical care and other
areas...“ March 26 2010
Prime Minister Yukio Hatoyama
"I imagine that, from the perspective of business managers, the "fear of no bottom
in sight" may have gone, but the "anxiety of no future in sight" may remain
significant.” January 29, 2010
Masaaki Shirakawa, Governor of the Bank of Japan
US Commercial Service - Japan
4
Japan Real GDP Growth Rate
Source: Japan Cabinet Office
US Commercial Service - Japan
-6
-4
-2
0
2
4
6
8
%
CY
7.1%
(1988)
-5.2%
(2009)
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Japan Housing Starts
Source: Japan Ministry of Land, Infrastructure, Transport and Tourism
US Commercial Service - Japan
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
New Construction Starts of Dwellings
1,707,109
(1990)
788,410
(2009)
Dwelling uni