Japan has faced low growth, rising government debt and deflation

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How's life in Japan? A mixed picture

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Key macroeconomic indicators

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Consumer price inflation has fallen since 2014

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The upward trend of the yen during 2016 has been reversed

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The gap between the growth of productivity and real wages is large in Japan

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The minimum wage in Japan is relatively low

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Evolution of macro-financial vulnerabilities since 2007

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Real exports by type of goods

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Quantitative and Qualitative Easing has sharply increased Japan's monetary base

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Quantitative and Qualitative Easing has reduced interest rates across the yield curve

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Asset price trends in Japan are improving

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The Bank of Japan's holdings of domestic government bonds are high

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Total working hours have declined as part-time employment has increased

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Japan's population is declining and ageing

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Increasing female employment can help limit the looming labour supply shortage

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Productivity growth has slowed in Japan, as in most OECD countries, since the 1980s

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Relative poverty in Japan has risen to a high level

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Productivity at Japanese firms has diverged significantly during the past few decades

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Labour income inequality is positively correlated with productivity disparities between firms

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Annual firm exit and entry rates in Japan are low compared to other advanced countries

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The share of entrepreneurs in Japan is low, especially among women

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Productivity in small firms in Japan is low relative to large firms

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Credit guarantees for SMEs in Japan are exceptionally large

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Small firms in Japan tend to stay small

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There is scope to align Japan's product market regulation with OECD best practice

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R&D spending is concentrated in large manufacturing firms

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The wage gap between regular and non-regular workers is large

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Green growth indicators: Japan

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Japan's government debt is the highest in the OECD but interest payments on the debt are low

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Long-run simulations of the government debt ratio

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Government projections show it failing to meet its fiscal targets

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Sustained fiscal consolidation is needed to reduce and stabilise the government debt ratio

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Government revenue has not kept up with rising expenditures

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Elderly-related social spending is projected to rise further

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The tax and transfer system redistributes income from the working-age to the elderly

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Transfers and asset holdings support high levels of consumption among the elderly

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The higher the number of beds, the longer are hospital stays, leading to greater health spending

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Local government spending varies widely, influenced by ageing and population density

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Japan's stock of public capital is exceptionally large

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Japan's taxes on goods and services, and personal income are relatively low

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The effective personal income tax rate on high earners is reduced by low rates on capital gains

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Environmentally-related taxes in Japan are well below the OECD mean

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Productivity growth has slowed worldwide since the 1990s

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Labour productivity in Japan remains about a quarter below the top half of OECD countries

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The labour productivity gap between global frontier firms and other firms is widening

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Productivity in Japanese firms has diverged significantly

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Exit, bankruptcy and dissolution of firms in Japan

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The share of non-viable firms in Japan is significant

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International comparison of corporate insolvency frameworks

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Japan's annual firm entry rate is lower than in other advanced economies

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Views on entrepreneurship in Japan are negative

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Access to entrepreneurial training and finance is relatively low in Japan, especially for women

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The venture capital sector is relatively undeveloped in Japan

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Share of institutional investors complying with the Stewardship Code's principles

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The share of companies with independent directors has increased rapidly

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Agricultural producer prices in Japan are high

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Japan's farm workforce is elderly

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The level of foreign direct investment in Japan remains low

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The productivity gap between manufacturing and non-manufacturing has widened sharply

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Public credit guarantees for loans to small and medium-sized enterprises have fallen significantly

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Non-regular employment is concentrated among women

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Percentage of workers reporting a skill mismatch in 2011-12

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Japan is lagging in the share of firms with broadband connectivity

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Japan's fiscal situation has deteriorated considerably over the past 20 years

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Rapid population ageing will create strong upward pressure on government spending in Japan

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Sustained fiscal consolidation is needed to reduce the government debt ratio

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The impact of the social safety net on the working-age population is weak in Japan

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The upward trend in public social spending in Japan is projected to continue

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Health spending in Japan increased rapidly due to ageing and more intensive care

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The use of generic drugs in Japan is low

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The elderly in Japan make frequent use of medical services

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Long-term care expenditure has more than doubled in 14 years

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Problems in Japan's pension system

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The coverage of the Basic Livelihood Protection Program is rising

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Subnational government revenue, expenditure and debt in Japan relative to the OECD

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Local government expenditure is steady but its composition is changing

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Differences in per capita spending is largely financed by central government transfers

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Spending by municipalities is driven up by ageing and falling population density

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The decline in Yubari's population is projected to continue

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Yubari is paying more than half of its general revenue for debt redemption

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Childcare capacity is limited in major urban areas

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The fall in the number of school-age children allows scope for school consolidation

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The public capital stock in Japan is exceptionally large

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Government transfers to public hospitals have increased

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Social security contributions have risen significantly during the past 25 years

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Japan's consumption tax is relatively low

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Replacing income deductions with a tax credit lowers the burden on low-income households

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Social security contributions pose heavy burdens on non-regular workers

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