Briefing on JapaneseEconomy and Business

The Sixth Biennial International Business Institute For Community College Faculty

May 17, 2005 8:15am to 9:00am

Toshikata Amino

Visiting Professor

Kansai University of International Studies, Japan

Current Status of Japanese Economy

• Japan is now finally getting out of long sluggish economy since 1991、 however not stable yet

Japanese Government’s Official Economic Report, April ‘05

1 Corporate profit is increasing and also investment is slowly increasing

2 Consumer expenditure is improving

3 Unemployment ratio is still a concern however we see a sign of improvement

4 Export is weak and domestic production is

not increasing

GDP Forecast for 2005

• 0.6%

• (Past couple years – minus or zero%)

History of Real GDP

• Unit \100 Million or about $1 Million

History of GNP

Bankruptcies-Decreasing

Relatively High Unemployment

Impacts of Sluggish Economy to Household

Savings and

Debts of

Salaried

Workers’

Household

Household Saving Ratio

Strong Yen made Japanese Manufacturers difficult to export

Overseas Investment

Overseas Production Ratio

For Example – Auto Industry

• Export from Japan

Overseas Production - Automobile

Japan’s Problem-Aging

• Japan is

Fastest

Aging

Country

Birth Rate is decreasing

Life Expectancy – Higher and Higher!

Population Forecast

Distribution of Japanese Population

Decreasing Labor Forces

Foreign Labor Forces

Social Security in danger

Some Impacts - Examples

• Beer Consumption

Examples (Continued)

• College Enrollment

China Impacts• GDP　　　　　　　　　　 Trade

China Impact (Continued)

• Real Economic Growth Rate　

China Impacts

• China for Japan

• 90th Low wage labor for manufacturing.

Products for Japanese market

Manufacturing bases for global market

• 00th Huge potential market

China Impacts (Continued)• China is becoming the most important trade

partner

China Impacts (Continued)

• Trade Surplus

with China

Deficit

More college students from China

Interesting Social and Economical Phenomenon

• Rapidly increasing number of mobile phones

Internet Users

(Continued)

• Health conscious Japanese are not helping

MacDonald Hamburger

Land PriceCome to Tokyo, build your house

Thank you for your listeninge-mail aminousjpn@aol.com