Country of the Month: Japan

Japan’s economy is the second largest national economy after the U.S. It accounts for about 18% of the world’s GDP. By comparison, the U.S. accounts for 27% and Canada for 2%. Japan is Canada’s second largest trading partner after the U.S. and imported more Canadian products than the UK, Germany, France, and Italy combined and nearly half of all Canadian exports to Asia.

Japan’s economy has been affected over the last few years by the Asian economic crisis, though significantly less than many other countries in the region. After decades of strong growth and near zero unemployment, Japan has suffered stagnant growth and rising unemployment. Its problems include weak consumer demand in Japan and from its Asian trading partners, weakness in the financial sector, and a lack of new investment. The process of restructuring its economy has been led by a surge in government spending. This has helped push the deficit to over 10% of this year’s GDP. Japan’s debt now exceeds 100% of GDP. This will remind Canadians of our situation in the early 1990s.

For general economic background about how Japan has done during the toughest economic times it has faced in decades, try the following sites.

For authoritative, current data and analysis, the Bank of Japan (www.boj.or.jp/en/index.htm) is a good bet. Click on Download for files to save. Its June 1999 Report (12 pages with 36 sizzling charts) begins with the words "Japan’s economy, at present, has stopped deteriorating, but clear signs of recovery have not been observed yet", which sums up the current situation well.

The Asia-Pacific Economic Cooperation (APEC) site (www.apecsec.org.sg./) has information about Japan that covers the 1996-98 period well with data and the highlights of Japan’s plan for recovery and how Japan is assisting other countries in the area. On APEC’s home page under Member Economies, click on the Individual Economy Report link and then on Japan.

If a brief economic overview to 1997–98 and several good links are all you want, try Japan Economy (www.emulateme.com/economy/japeco.htm). For specific information about Japan’s economic connections with Canada, the following sites will be helpful.

Ni-Ka Online (www.dfait-maeci.gc.ca/ni-ka/menu-e.asp) provides practical information on Canada-Japan relations. The Japan Division of Canada’s Department of Foreign Affairs and International Trade maintains this site. Several links down the left of the site will take you to useful economic information. Business Development links you to Japan’s Economic Importance for Canada (interesting information about our economic relationship), The Japanese Economy in 1998 (an introduction to Japan’s recent economic difficulties), and Japan and the World Economy and Japan and the Asian Economy (insight on the economic importance of Japan to the world and regional economies. It also provides links to information about different economic sectors.

Strategis is a site maintained by Industry Canada. It has an incredibly useful feature that allows you to specify the trade data you want. Go to its home page, entitled Trade Data Online, (http://strategis.ic.gc.ca/sc_mrkti/tdst/engdoc/tr_homep.html) and, under Imports and Exports by Industry, click on Generate Reports. This will take you to the following:

Choose either Imports or Domestic Exports under Choose Trade Type and one of the three choices under Choose Breakdown. Then click Continue. This will take you to the following:

where you may then choose whatever country you wish by scrolling down the Choose Origin box. In this case, if you scroll to Japan and leave the Choose Destination box as is at CANADA, you will get this:

Under Report Selection, choose how you wish to have the information displayed; then click Display Report and you will produce the following information:

By working with this excellent tool, you will be able to generate trade data to your own specifications and for any of Canada’s trading partners.

If you are seeking information about trade relationships and opportunities with Japan, try the Japan External Trade Organization (Jetro), which maintains city-specific sites in Toronto (www.toronto.jetro.org/jetro.html), Vancouver, and Montreal. Go to the Jetro home page (www.jetro.go.jp/top/index.html) and click on the Focus Japan link, which takes you to a monthly magazine about Japan’s economy, industries, markets, and living trends. Clicking on the Research button on the left-hand side of the home page leads you to current economic reports.