Lucintel’s Pestle Analysis Of Japan 2013: Country To Grow At Declining Rate Over The Next Five Years

By Author: Roy Almaguer
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The GDP of the third largest economy in the world, Japan, is expected to grow at a declining rate and reach an estimated $5.94 trillion by 2018 at the current price. Decrease in domestic consumption as a result of declining population is expected to affect the economic growth. The country, however, will be benefitted from significant exports due to recovery of the US economy and depreciating yen against the US dollar.

Lucintel, a leading global management consulting and market research firm, has conducted a detailed analysis on the various growth opportunities and risk factors associated with the country and present its findings in “PESTLE Analysis of Japan 2013.” The government is spending of $53 billion for public works, and employment is likely to support moderate growth of the Japanese economy.

As per the study, Japan is likely to face issues related to aging population in the coming years which can cause problems for Japanese economy. The country’s debt has increased to 238% of GDP. Increasing fiscal deficit decreases the ability of a government to increase spending to stimulate the economy.

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... economy has positive aspects as well. Strengths of the Japanese economy are high standard of living, educated workforce, higher Human Development Index (HDI), increasing urbanization, low corruption, and low homicide rate. The basic social factor affecting the Japanese economy is the increasing dependency ratio of the country. The country has well-defined investment policies and support from government and industry associations which encourage free trade. The service sector of Japan is the major contributor to GDP and the key driver for growth of economy. The service sector is likely to expand in upcoming years. Industries in the service sector such as transport, infrastructure, information and communication, finance and insurance, business services, real and estate, etc. are driving the growth.

This market report analyzes the impact of different macroeconomic factors of the country on different industries. This also includes the impact of socio-political-demographic changes on different industries in that country. This report analyzes domestic and external economic trends, government policies, technological changes and their impact on different industries. In the current economic scenario of the country, machinery, electronics and electrical, automobile industries are likely to be most affected.
For a detailed table of contents and pricing information on these timely, insightful reports contact Lucintel at +1-972-636-5056 or via email at helpdesk@lucintel.com. Lucintel offerings include SWOT Analysis, Due Diligence, Target Screening and Merger & Acquisition Consulting. To learn more, visit www.lucintel.com. Like us on https://www.facebook.com/lucintel