The Japanese economy is in its longest post-war expansion after more than a decade of stagnation.
Situated in north-eastern Asia between the North Pacific and the Sea of Japan, the Japanese archipelago has more than 1,000 islands and diverse living environments.
From the snowy mountains in the northern island of Hokkaido to the bustling cities of Tokyo, Kyoto and Osaka, and the tropical rice paddies in southern Kyushu, Japan's mountains, hills and forests cover two thirds of the country, while residential and industrial area account for less than 10 per cent of land area.
As a country, Japan values tradition and history and upholds the principles of free society. Its culture is greatly influenced by the four relatively distinct seasons and the Japanese have always been keen, throughout their long history, to regard their current season as part of their lives.
Strongest economy
The Japanese economy is one of the strongest in the world. Close government-industry cooperation, a strong work ethic, and mastery of high technology have helped Japan advance with extraordinary speed to become the second-largest economy in the world. Japan's main export goods are cars, electronic devices and computers, while its most important import goods are raw materials such as oil and wood. With only 15 per cent arable land, Japan's agricultural economy is highly subsidised and protected. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy.
According to figures released by the Japan External Trade Organization (JETRO), Dubai, "Japan's exports grew 8.2 per cent year-on-year in 2006 to reach $647.3 billion (about Dh2,380.8 billion), while imports rose 11.7 per cent to $579.3 billion (about Dh2,130.6 billion). Japan's net outward Foreign Direct Investments (FDI) grew 10.3 per cent year-on-year to $50.2 billion (about Dh184.6 billion) in 2006, topping the previous record set in 1990."
The Japanese economy is now in its longest post-war expansion after more than a decade of stagnation. The economy saw signs of strong recovery in 2005 and the GDP growth for that year was 2.8 per cent, with an annualised fourth quarter expansion of 5.5 per cent, surpassing the growth rate of the US and European Union during the same period. Unlike previous recovery trends, domestic consumption has been the dominant factor in leading the growth and the Japanese government predicts that recovery will continue.
Business hub
A survey of overseas companies in Japan conducted by JETRO in early 2006 indicated that one in five of these companies sees Japan as a centre for research and development and as a base for business activities in Asia. Today, increasing numbers of companies around the world are partnering with Japanese companies to develop products and services, create innovative technology, and conduct research and development projects.
There are several factors that make Japan an ideal place for investing — consumers who stay on the cutting edge of latest technology, make this an ideal test market for new products and services Japan's technology-based industries offer a multitude of opportunities for foreign companies looking to partner with Japanese firms at all stages. Foreign-affiliated companies have long found their partnerships with Japanese companies to be one of loyal. Japanese companies emphasise product development and manufacturing efficiency, making Japan the ideal arena for innovation. Japan has a rapidly growing broadband society and its environment market has expanded since the second half of the 1990s due to the government's advancement of environmental laws. Japan's population over age 65 will be growing in the coming decades, creating demand in various sectors, such as biopharmaceutical foods, senior care services and others. In addition to this, the country's national labour market has abundant highly skilled workers.
Banking, insurance, real estate, retail, transportation and telecommunications are major industries in Japan. It is also home to some of the largest and most technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals.
Japan is home to three major financial groups — the Mitsubishi UFJ Financial Group, the Mizuho Financial Group and the Sumitomo Mitsui Financial Group. Multinational companies such as Sony, Sumitomo, Mitsubishi, and Toyota are also industrial heavyweights.
According to Yoshio Minagi, Managing Director of JETRO, Dubai, "The field of biotechnology is also growing in Japan. The mobile penetration rate is very high, and the telecommunication industry is booming. A strong middle class, good education system, and creation of new businesses like the internet business and a new retail network have all led to the development of Japan. The country also has a very well developed environment technology and conducts research in the area of solar power generation and other energy saving areas."
Family focus
The Japanese often think of themselves as a homogeneous society, with a strong sense of group and national identity. The country is currently facing the problem of an ageing population. According to media reports, one out of five Japanese are over the age of 65, making Japan one of the oldest populations in the world. Japan's impressive healthcare systems and healthy lifestyles have allowed seniors to live fuller lives.
The family is an important tight-knit unit, and although family roles have changed in recent years (with the growth of the nuclear family), it is believed in Japan that children should live close enough to carry over a bowl of hot soup for parents and grandparents.
Despite the preference of Japanese youth for western food, rice remains a staple. To the Japanese, rice goes down best with a bowl of miso soup, which differs in tastes and ingredients depending on the region. Bread in Japan is thought of as part of a light meal, so it is often eaten at breakfast or as a snack. The younger the child, the more likely they are to prefer western food, thereby indicating a slow drifting away from the traditional Japanese cuisine of sushi, tempura or suki-yaki. Curried rice, however, remains one of the most popular meals in Japan.
Life, Japanese style
A blend of changing customs and unchanging values characterise the Japan of today. Company employees are working fewer hours, and modern electric appliances have made household chores less time-consuming. Interestingly, disposable income, formerly dedicated to acquiring more things, is now being used for travel, and other activities that bring a sense of satisfaction.
Baseball is one of the most popular sports. And while Kabuki is still one of the best forms of traditional entertainment for ordinary citizens, there is a whole area of popular culture that is slowly emerging. Old hobbies are evolving with the help of the latest technology. Karaoke is one example. Magazines report increased sales of music and video software. Bowling alleys have become popular and social networking is on the rise. Computer games and UFO Catcher machines found in game centres are also popular with Japanese youth.
The other attraction at game centres is Purikura. These machines, immensely popular with the girls, take their picture and then compose it in a graphic frame and print out a set of 16 to 20 of them as stickers. Many girls carry a Purikura photo album with them and any time they are out they make new Purikura with their friends.
