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Japan Economic Snapshot

Going for Growth 2021 - Japan

Mindful of the strong population ageing already underway, the COVID-19 recovery strategy needs to enhance labour force participation and spur business dynamism. Moreover, significant potential to expand use of digital technologies, in both the public and the private sector as well as education, should be seized.

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2021 Structural Reform Priorities

  • Labour market: Support the employment of all available talents, allowing various work styles
  • Competition and regulation: Ease entry barriers and raise productivity, especially in services, agriculture and SMEs
  • Education and skills: Provide equal and improved education opportunities to all students
  • Tax system: Improve the efficiency of the tax system for sustainable growth and public finances
  • Environmental policy: Step up research and development and financing for meeting GHG emission goals

 

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Economic Forecast Summary (December 2020)

The COVID-19 shock in early 2020 triggered a major recession and real GDP is projected to shrink by around 5¼ per cent this year. The economy is gradually strengthening although growth remains sluggish. Ongoing difficulties in bringing COVID-19 infections under control hold back domestic demand. As restrictions are lifted in the near term, consumption is expected to recover, supported by government subsidies and incentives. In addition, recovering external demand, as the sanitary situation of trading partners improves, will sustain export growth. On the other hand, private investment is set to remain relatively subdued. Overall, GDP is projected to expand by 2¼ per cent in 2021 and 1½ per cent in 2022, assuming further economic stimulus.

Fiscal policy reacted forcefully to the sanitary shock, and has subsequently been balancing the needs of protecting households by keeping infection rates low with reactivating businesses adversely affected by the pandemic. However, without any action beyond the measures currently in place, the recovery may slow. A resilient and sustainable economic expansion will require further policy support and structural reforms.

15 April 2019 - Economic Survey of Japan

Executive Summary

 

主な結論

 

Launch documents

> Overview in English and in Japanese, 70 pages

Read the survey online

> Meeting Japan’s intertwined challenges of population ageing and high government debt, Blog post

> Press Release

 > Remarksby Angel Gurría, OECD Secretary-General 

Presentation in English

 

Presentation in Japanese