Strong stimulus, slow return to normal

A2

MEDIUM RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD5064.87bn (World ranking 3, World Bank 2020)
Population 125.84mn (World ranking 11, World Bank 2020)
Form of state Parliamentary government with a Constitutional Monarchy
Head of government Yoshihide Suga  (PM)
Next elections on or before 22 October 2021, House of Representatives
  • Robust external position (current account surplus, low public external debt etc.)
  • JPY considered safe-haven currency
  • Innovative industries and high-quality products
  • Large financial surplus of non-financial corporations
  • Developed country in a dynamic region
  • Vulnerable to natural disasters
  • Aging population
  • Huge public debt and large public deficit
  • Highly dependent on energy imports

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
China 22%
1
25.8% China
United States 18.5%
2
11.3% United States
Korea, Republic of 7.0%
3
5.6% Australia
Taiwan 6.9%
4
4.2% Taiwan
China, Hong Kong SAR 5.0%
5
4.2% Korea, Republic of

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Road vehicles 18.9%
1
9.0% Electrical machinery, apparatus and appliances, n.e.s.
Electrical machinery, apparatus and appliances, n.e.s. 14.0%
2
8.7% Petroleum, petroleum products and related materials
Specialised machinery 7.9%
3
5.5% Telecommunication and sound recording apparatus
Other industrial machinery and parts 5.4%
4
5.4% Gas, natural and manufactured
Professional and scientific instruments, n.e.s. 4.2%
5
4.9% Office machines and automatic data processing machines
The payment culture in Japan is excellent with only a minority of invoices remaining unpaid thanks to strong cultural particularities. However, excessive DSO and significant payment disparities may be observed from one sector to another.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

Although domestic courts tend to be fairly efficient in delivering timely decisions, tribunals are time-consuming, expensive and complex. Therefore, conducting well-orchestrated pre-legal collection actions is essential.

Similarly, collecting debt from insolvent debtors is overall a challenging exercise and, even though insolvency proceedings could yield dividends, these would spread over years and generate significant costs.
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