Japan 18-K Annual report (foreign governments)

Exhibit 1

Japan

This description of Japan is dated August 7, 2024, and appears as Exhibit 1 to Japan’s Annual Report on Form 18-K to the U.S. Securities and Exchange Commission (the “Commission”) for the fiscal year ended March 31, 2024.

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THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THIS DOCUMENT (OTHERWISE THAN AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATION STATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933) DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF OR GUARANTEED BY JAPAN.

TABLE OF CONTENTS

GENERAL	4
Area and Population	4
Government	4
Political Parties	4
Leadership	5
International Organizations	5
International Trade Agreements	6
THE ECONOMY	8
General	8
Summary of Key Economic Indicators	11
Gross Domestic Product and National Income	12
Industry	14
Energy	14
Price Indices	16
Labor	16
Aging Workforce and Population Decrease	19
FOREIGN TRADE AND BALANCE OF PAYMENTS	21
Foreign Trade	21
Balance of Payments	24
Foreign Exchange Rates	25
Foreign Direct Investment	25
FINANCIAL SYSTEM	29
The Bank of Japan and Monetary Policy	29
Government Financial Institutions	29
Private Financial Institutions	30
GOVERNMENT FINANCE	31
Revenues, Expenditures and Budgets	31
Tax Structure	36
Fiscal Investment and Loan Program	36
DEBT RECORD	38
JAPAN’S PUBLIC DEBT	38
INTERNAL DEBT	39
Direct Debt of the Japanese Government	39
Debt Guaranteed by the Japanese Government	42
EXTERNAL DEBT	43
Debt Guaranteed by the Japanese Government	43
SUBSCRIPTIONS TO INTERNATIONAL FINANCIAL ORGANIZATIONS	44

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FURTHER INFORMATION

This document appears as an exhibit to Japan’s Annual Report filed with the Commission on Form 18-K for the fiscal year ended March 31, 2024. Additional information with respect to Japan is available in such Annual Report, in the other exhibits to such Annual Report and in amendments thereto. Such Annual Report, exhibits and amendments may be inspected and copied at the public reference room maintained by the Commission at: 100 F Street, N.E., Washington, D.C. 20549. Information regarding the operations of the public reference room can be obtained by calling the Commission at 1-800-SEC-0330. The Annual Report and its exhibits and amendments are also available through the Commission’s Internet website at http://www.sec.gov.

In this document all amounts are expressed in Japanese Yen (“¥” or “yen”), except as otherwise specified. The spot buying rate quoted on the Tokyo Foreign Exchange Market on August 2, 2024 as reported by the Bank of Japan (the “BOJ”) at 5:00 p.m., Tokyo time, was ¥149.21=$1.00, and the noon buying rate on July 26, 2024 for cable transfers in New York City payable in yen, as reported by the Federal Reserve Bank of New York, was ¥153.86=$1.00. See “Foreign Trade and Balance of Payments — Foreign Exchange Rates”.

References herein to Japanese fiscal years (“JFYs”) are to 12-month periods commenced or commencing in each case on April 1 of the year indicated and ended or ending on March 31 of the following year. References to years not specified as being JFYs are to calendar years.

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Japan

GENERAL

Area and Population

Japan, an archipelago in the western Pacific, consists of four main islands (Hokkaido, Honshu, Kyushu and Shikoku) which are mostly mountainous located in the same approximate range of latitude as the east coast of the United States north of Florida. The total area of Japan is approximately 146,000 square miles, which is slightly less than that of California and about 4% of the United States. It is bordered by the Sea of Japan to the west and north, and by the Pacific Ocean to the east and south.

Japan has a total population of approximately 124 million (estimated as of July 1, 2024). It has one of the highest population densities in the world and approximately 24.4% of its people (estimated as of October 1, 2023) are concentrated in three metropolitan areas (Tokyo, Osaka and Nagoya). Japan’s rate of population decreased during the years 2019-2023 was 1.7%. Japan’s population decreased 0.5% during the 12 months ended October 1, 2023 (estimated as of October 1, 2023).

Government

The legislative power in Japan is vested in the Diet, which currently consists of a House of Representatives having 465 members and a House of Councillors having 248 members. Members of both houses are elected by direct universal suffrage, except that some members of each house are elected by proportional representation. The power of the House of Representatives is superior to that of the House of Councillors in respect of approving certain matters including the national budget and electing the Prime Minister.

The executive power is vested in the Cabinet consisting of a Prime Minister, elected by the Diet from among its members, and other Ministers appointed by the Prime Minister, a majority of whom must be members of the Diet. The judicial power is vested in the Supreme Court and such lower courts as are established by law.

Japan’s 47 prefectures, and its cities, towns and villages, have a certain degree of local autonomy through popularly elected legislative bodies and chief executives. The central government exercises its influence on local governments indirectly through financial aid and prescribing standards of local administration.

Political Parties

Members of the House of Representatives are elected for four-year terms unless the House of Representatives is dissolved prior to expiration of their terms. The House of Representatives was dissolved on October 14, 2021 and an election was held on October 31, 2021. 289 members were elected from single-member districts and 176 members were elected through a proportional representation process from 11 regional districts. Pursuant to a revision of the Public Offices Election Act in July 2018, the number of seats in the House of Councillors was increased to 248 from 242. The members are elected for six-year terms with one-half of the membership being elected every three years. In an election in July 2022, 124 members were elected, of which 50 members were elected through a proportional representation system and 74 members were elected from 45 districts that correspond to the 47 prefectures of Japan. Currently, the House of Councillors consists of 124 members whose term expires in July 2025 and 124 members whose term expires in July 2028.

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The following tables set forth the membership by political party of the House of Representatives as of July 18, 2024 and the House of Councillors as of July 18, 2024.

	House of Representatives
Liberal Democratic Party		257
The Constitutional Democratic Party of Japan and the Independent		99
Japan Innovation Party and Free Education For All (Nippon Ishin and Free Education For All)		45
Komeito		32
Japanese Communist Party		10
Democratic Party For the People		7
Yushi no Kai		4
REIWA SHINSENGUMI		3
Independents		8
Vacancies		0
Total		465

Source: House of Representatives.

	House of Councillors
Liberal Democratic Party		115
The Constitutional Democratic Party of Japan and Social Democratic Party		40
Komeito		27
Japan Innovation Party and Free Education For All (Nippon Ishin and Free Education For All)		21
Democratic Party For the People and The Shin-Ryokufukai		11
Japanese Communist Party		11
REIWA SHINSENGUMI		5
Okinawa Whirlwind		2
The Party to Protect People from NHK		2
Independents		12
Vacancies		2
Total		248

Source: House of Councillors.

Leadership

Japan’s current Prime Minister is KISHIDA Fumio, a member of the Liberal Democratic Party of Japan and member of the House of Representatives in the Diet. KISHIDA Fumio was elected as Japan’s 100th Prime Minister on October 4, 2021, succeeding the former Prime Minister SUGA Yoshihide.

International Organizations

Japan is a member of the United Nations and other international organizations, including the International Monetary Fund, International Bank for Reconstruction and Development, International Development Association, International Finance Corporation, Multilateral Investment Guarantee Agency, Asian Development Bank, Inter-American Development Bank, Multilateral Investment Fund, Inter-American Investment Corporation, African Development Bank, African Development Fund, European Bank for Reconstruction and Development and International Fund for Agricultural Development. See “Subscriptions to International Financial Organizations”.

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International Trade Agreements

Japan signed an agreement to join the Trans Pacific Partnership, or TPP, on February 4, 2016. Upon the ratification of the TPP, Japan and the other participating countries planned to not only eliminate tariffs on products but also liberalize services and investment, and establish rules in a wide range of fields, including intellectual property, e-commerce and the environment. Although Japan ratified the TPP on January 20, 2017, the United States announced its formal withdrawal from the TPP on January 23, 2017. On March 8, 2018, Japan and ten other countries excluding the United States signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, pursuant to which each signatory country agreed to start the necessary preparations for the implementation of the TPP. The CPTPP entered into force for Japan, Mexico, Singapore, New Zealand, Canada, and Australia on December 30, 2018, for Vietnam on January 14, 2019, for Peru on September 19, 2021, for Malaysia on November 29, 2022, for Chile on February 21, 2023 and for Brunei on July 12, 2023. On February 1, 2021, the United Kingdom formally applied to join the CPTPP. On March 31, 2023, the United Kingdom and the members of the CPTTP concluded negotiations on the United Kingdom’s accession to the CPTPP. On July 16, 2023, the members of the CPTTP formally approved the United Kingdom’s application for membership. The United Kingdom is expected to join the CPTPP after ratification of the formal agreement by the United Kingdom and each of the party states.

Japan has also entered into Economic Partnership Agreements, or EPAs, with various countries, including Singapore, Mexico, Malaysia, Chile and Thailand. As of July 2024, Japan had entered into a total of 21 EPAs (including the TPP) with 24 countries and regions. Pursuant to the EPAs, Japan will collaborate comprehensively with the counterparties to, among other things, reduce or eliminate tariffs, grant most-favored-nation status in the fields of investment, services and government procurement and expedite patent review and enhance patent protection in the field of intellectual property.

Japan is also a member of international organizations which are based on international trade treaties and other agreements which seek to promote free trade in the international market, including the following: the World Trade Organization, the Organization for Economic Co-operation and Development, the World Customs Organization and the International Trade Centre.

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The following is a map of Japan, illustrating its location with respect to neighboring countries:

 

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THE ECONOMY

General

Japan has a highly advanced and diversified economy, which has developed in response to changing conditions in Japan and the world. During the era of high economic growth in the 1960s and the early 1970s, the expansion was based on the development of heavy industries consuming large quantities of resources. During the 1980s, there was rapid growth in high value-added industries, such as electronics and precision instruments, which employ high level technology and consume relatively low quantities of resources. The service sector of the economy grew significantly during the 1980s and 1990s.

While the Japanese economy expanded during the period from 2002 to 2007, amidst that expansion, and prior to the global economic crisis of 2008, Japan continued to face several domestic economic difficulties. Among other things, domestic consumption contributed to the economic recovery to a lesser degree than was the case in prior economic growth periods. Also, despite the improving employment environment at the time, the average wage failed to grow appreciably. While those Japanese manufacturing companies with a global competitive edge achieved growth on the back of the favorable world economy, small-to-medium enterprises and non-manufacturing sectors realized only limited productivity growth and profitability. This in turn caused imbalance in the level of economic recovery among the different regions in Japan. In the longer term, Japan faced a declining population, mass retirement of the baby boomer generation, environmental/energy conservation agenda, and fiscal deficit problem. Against this backdrop, the subprime loan crisis in the United States and increases in the prices of energy and raw materials precipitated weakness in the global economy, caused the Japanese economy to deteriorate. Throughout JFY 2008, the global economy continued to worsen, as the collapse of several major financial institutions in the United States and other factors contributed to a credit tightening, volatility in stock, currency and other markets, loss of consumer confidence and decrease in business and industrial activities on a global basis. The Japanese economy was also adversely affected by these factors, especially as Japan’s export sector was hit by the decline in global demand and appreciation of the yen against other major currencies. After February 2008, Japan had entered a recession. The Japanese economy in JFY 2010 picked up, despite a difficult situation where the unemployment rate remained at a high level.

On March 11, 2011, just as the Japanese economy was in a transition from the state of stagnation to recovery, the Great East Japan Earthquake (the “Earthquake”) struck Japan. As a result, the Japanese economy posted negative growth for the first and second quarter in 2011. Unlike the cases of the Great Hanshin-Awaji Earthquake in 1995 or Hurricane Katrina in 2005, personal consumption declined on a nationwide basis, with consumer sentiment deteriorating sharply after the Earthquake. The Earthquake had a severe impact on production in Japan through the shutdown of damaged factories, disruptions of the supply chains and power supply constraints. In particular, the Earthquake affected Japan’s auto industry which depends on the Tohoku region for the supply of key parts including semiconductors and other electronic components. The supply constraints and the slower growth in corporate earnings in the aftermath of the Earthquake also put downward pressure on capital investment activities. The Earthquake was accompanied by a nuclear power plant accident, which not only caused power supply constraints but also had a chilling effect on certain business activities, such as in the tourism and leisure sectors. Following the Earthquake, the number of visitors to Japan from foreign countries dropped by approximately half from the monthly averages in the prior year. The Earthquake and its aftermath prompted the Government of Japan to compile a series of supplementary budgets to support reconstruction efforts. On May 2, 2011, a first supplementary budget of approximately ¥4 trillion was approved by the Diet to finance reconstruction relating to damages from the Earthquake and tsunami. The budget was aimed at disaster relief, including providing temporary housing, rebuilding of facilities and disaster assistance loans. On July 25, 2011, the Japanese government approved a second supplementary budget of approximately ¥2 trillion aimed at further disaster relief, including increasing the Contingency Reserve for Recovery from the Great East Japan Earthquake. On November 21, 2011, the Japanese government approved the third supplementary budget of approximately ¥12 trillion aimed at disaster relief, including provision of emergency support to people affected by the disaster and reconstruction of public utilities and facilities. On February 8, 2012, the Japanese government approved the fourth supplementary budget including the establishment of a government guaranteed ¥500 billion credit facility in response to the so-called “Overlapping Debt Problem”, whereby the burden of existing debt makes it difficult to raise funds for victims of the Earthquake. Thereafter, the Japanese government approved budgets of approximately ¥4 trillion for JFY 2012, ¥5 trillion for JFY 2013 and ¥4 trillion for JFY 2014 to finance reconstruction efforts.

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The Earthquake and the nuclear disaster in Fukushima were followed by severe flooding that occurred at the end of July 2011 in Thailand, one of Japan’s largest trading partners for both exports and imports. The suspended operations of the local factories in Thailand suppressed Japan’s Thailand bound exports of goods including intermediary materials for cars and electronics and thereby adversely affected the Japanese economy.

Thus, JFY 2011 started in a very challenging environment, with the Earthquake seriously crippling the economy, which posted negative growth for the first quarter. Over time, the government and the people joined forces in an all-out effort to rebuild the social and economic infrastructure, facilitating a rapid recovery of the supply chains and helping the economy on a track to a gradual recovery. Since the summer of 2011, however, the rapid appreciation of the yen, the reduced external demand due to the Thai flooding (as described above) and deceleration in the world economy stemming from the European sovereign debt crisis kept such recovery to a modest level.

In December 2012, the Cabinet Office of the Government of Japan announced “Abenomics” (named after the former Prime Minister ABE Shinzo), an economic strategy of pursuing an expansionary monetary policy, a flexible fiscal policy and an economic growth agenda that promotes private investment, with the goal of achieving GDP growth and job creation. Pursuant to this strategy, specific measures to be implemented include accelerating reconstruction efforts in areas damaged by the Earthquake, increasing stimulus spending and subsidies aimed at strategically important sectors and utilizing a more flexible approach to economic and fiscal management. Other more recent Abenomics measures include the liberalization of electricity retail sales in April 2016 and the liberalization of gas retail sales in April 2017.

Additionally, in January 2013, the Government of Japan and the BOJ issued a joint statement announcing measures to overcome deflation and achieve sustainable economic growth with price stability in order to establish a sustainable fiscal structure and sound fiscal management. In March 2013, KURODA Haruhiko, former President of the Asian Development Bank, was appointed as governor of the BOJ. In April 2013, the BOJ announced its new quantitative and qualitative monetary easing policy, under which the BOJ is aiming to achieve a price stability target of 2% in terms of the year-on-year rate of change in the consumer price index at the earliest possible time. Nominal GDP increased by 5.0% during JFY 2023, and the annual growth rate of real GDP was 1.0%. The Japanese Diet has passed comprehensive social security and tax reform, including an increase in the consumption tax rate from 5% to 8% in 2014, and from 8% to 10% in 2015. Accordingly, the consumption tax rate was increased to 8% in April 2014. The increase in the consumption tax rate from 8% to 10% was postponed but introduced in October 2019. Due in part to this increase in the consumption tax, real GDP decreased during the fourth quarter of 2019 by 2.8% compared to the prior quarter. In addition to the increase in the consumption tax rate, as part of the tax reform, the effective corporate tax rate was reduced from 34.62% to 32.11% for JFY 2015 and it was further reduced to 29.97% for JFY 2016 and to 29.74% for JFY 2018.

The Japanese economy faces certain challenges. Challenges for the Japanese economy include, as further described herein, an increased dependence on LNG and other energy imports as a result of the nuclear accident at the Fukushima Daiichi Nuclear Plant and suspension of operations at other nuclear power plants and, over the long term, demographic challenges, such as the decline in the labor market due to the population aging and decreasing population, and the high levels of public debt and associated debt servicing payments. In addition, the Japanese economy is also exposed to challenges due to the potential impact of political disputes, technology and trade tensions with or among major trading partners, including China and the United States, as well as the potential escalation of geopolitical risks associated with the Middle East, North Korea or other countries or regions, which may negatively impact Japan’s international trade and economy more generally.

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According to the Monthly Economic Report published by the Cabinet Office of Japan for June 2024 published on June 27, 2024, the Japanese economy is recovering at a moderate pace, although it recently appears to be stalling, as the employment and income situation is improved and the implementation of various policies brought positive effects. Economic conditions in Japan may be negatively affected by the slowdown of major overseas economies including the effects of continued high interest rate levels in the U.S. and Europe as well as inflation, the situation in the Middle East and fluctuations in financial markets.

In addition, the global economy has recently been affected by Russia’s large-scale military activity against Ukraine that was initiated in February 2022 and the related economic sanctions imposed on certain Russian entities and persons by many major countries. In particular, financial and commodity markets have experienced significant volatility and energy prices have sharply increased mainly due to concerns regarding disruptions in oil and natural gas supply. Driven in part by increases in energy prices as well as increases in raw materials prices, there has been a significant inflationary trend in consumer prices in many major economies including Japan, and monetary authorities in some major economies have been tightening monetary policy in response to this trend. Depending on how the conflict develops and any additional economic sanctions imposed on Russia, as well as the impact of inflation and monetary policy developments, economic conditions in Japan and globally may be negatively affected for an uncertain period of time.

Specifically with respect to Japan, the year-on-year rate of increase in the consumer price index (the “CPI”) (all items less fresh food) has been at around 2% recently, mainly due to the waning but remaining effects of cost increases led by the existing rise in import prices being passed through to consumers, as well as a moderate increase in service prices. Looking forward, this trend is expected to continue. The year-on-year rate of increase in the CPI (all items less fresh food) is expected to remain above 2% through fiscal 2024, due to same factors such as the impact, albeit waning, of the pass-through to consumers of the cost increases stemming from the existing rise in import prices as well as the waning effects of the government’s economic measures to push down CPI inflation.

Thereafter, inflation is projected to moderately increase toward the price stability target, on the back of improvement in the output gap, rises in medium- to long-term inflation expectations and in wage growth.

While it is not clear how inflation will affect the Japanese yen, consumer and industrial prices in Japan, it is possible that inflationary trends may negatively affect the Japanese economy.

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Summary of Key Economic Indicators

The following tables set forth information regarding certain of Japan’s key economic indicators for the periods indicated:

	JFY 2019			JFY 2020			JFY 2021			JFY 2022			JFY 2023
	(yen amounts in billions, except percentages and index)
Percentage Changes of GDP from Previous Year
At Nominal Prices		0.0	%		-3.2	%		3.0	%		2.5	%		5.0	%
At Real Prices(a)		-0.8			-3.9			3.0			1.7			1.0
Total Revenues of Consolidated General and Special Accounts(b)	¥	251,292		¥	353,277		¥	322,651		¥	305,266		¥	284,280
Total Expenditures of Consolidated General and Special Accounts(b)		232,905			305,846			285,348			269,810			277,287
Surplus of Consolidated Revenues over Consolidated Expenditures(b)		18,387			47,431			37,303			35,456			6,993
Public Debt		965,926			993,542			1,037,735			1,072,905			1,107,223

(a) Real prices are based on calendar year 2015.

(b) The data for JFY 2023 is the provisional results as of December 31, 2023.

Source: Economic and Social Research Institute; Cabinet Office; and Ministry of Finance.

	2019			2020			2021			2022			2023
	(yen or dollar amounts in billions, except percentages and index)
Unemployment Rate		2.4	%		2.8	%		2.8	%		2.6	%		2.6	%
Consumer Price Index(a)		100.0			100.0			99.8			102.3			105.6
Annual Change		0.5	%		0.0	%		-0.2	%		2.5	%		3.2	%
Corporate Goods Price Index(b)		101.2			100.0			104.6			114.9			119.7
Annual Change		0.2	%		-1.2	%		4.6	%		9.8	%		4.2	%
Current Account regarding Balance of Payments	¥	19,251		¥	15,992		¥	21,467		¥	11,449		¥	21,381
Official Foreign Exchange Reserves	$	1,324		$	1,395		$	1,406		$	1,228		$	1,295

(a) Calendar year 2020=100.

(b) Calendar year 2020=100. Indices are calculated using the monthly averages.

Source: Ministry of Internal Affairs and Communications “Labor Force Survey”; Consumer Price Index, Statistics Bureau, Ministry of Internal Affairs and Communications; Domestic Corporate Goods Price Index, Bank of Japan; and Ministry of Finance.

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Gross Domestic Product and National Income

The following table sets forth information pertaining to Japan’s gross domestic product for JFY 2019 through JFY 2023. Nominal GDP increased by 5.0% during JFY 2023, and the annual growth rate of real GDP was 1.0%.

Gross Domestic Product^(a)

	JFY 2019			JFY 2020			JFY 2021			JFY 2022			JFY 2023			Percentage of JFY 2023 GDP
	(yen amounts in billions)
Total Consumption
Private sectors	¥	303,931		¥	289,442		¥	298,186		¥	315,921		¥	322,789			54.0	%
Public sectors		111,827			113,834			118,769			122,092			123,581			20.7
		415,758			403,276			416,955			438,012			446,371			74.7
Total Gross Capital Formation
Private sectors
Producers’ Durable Equipment		91,507			85,906			90,973			98,738			102,417			17.1
Residential Construction		21,411			19,913			21,501			21,859			21,907			3.7
Public sectors		29,297			30,814			29,795			29,278			30,353			5.1
		142,216			136,633			142,268			149,875			154,676			25.9
Additions to Business Inventories
Private sectors		893			-574			2,276			3,611			1,911			0.3
Public sectors		-5			-100			-9			-64			-60			-0.0
		888			-673			2,267			3,548			1,851			0.3
Net Exports of Goods and Services		-2,060			-408			-6,655			-22,772			-5,625			-0.9
Nominal Gross Domestic Expenditures	¥	556,803		¥	538,827		¥	554,835		¥	568,663		¥	597,273			100.0	%
Real Gross Domestic Expenditures(b)	¥	550,114		¥	528,648		¥	544,728		¥	553,895		¥	559,239
Surplus of the Nation on Current Account
Exports of Goods and Services and Other Receipts from Abroad		34,364			30,254			41,368			51,320			57,463
Less: Imports of Goods and Services and Other Payments Abroad		12,475			10,463			12,357			16,592			22,505
		21,889			19,791			29,011			34,728			34,958
Gross National Income	¥	578,692		¥	558,618		¥	583,846		¥	603,391		¥	632,231
Percentage Changes of GDP from Previous Year
At Nominal Prices		0.0	%		-3.2	%		3.0	%		2.5	%		5.0	%
At Real Prices(b)		-0.8			-3.9			3.0			1.7			1.0
Deflator(c)		0.8			0.7			-0.1			0.8			4.0

(a) GDP financial data are subject to change.

(b) Real prices are based on calendar year 2015.

(c) Deflator is a price index used to convert nominal prices into real prices. Deflator is derived by dividing nominal GDP by real GDP.

Source: Economic and Social Research Institute, Cabinet Office

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The following table sets forth information pertaining to Japan’s gross domestic product, as seasonally adjusted, for each of the eight quarters ended March 31, 2024.

	Quarterly Gross Domestic Product(a)
	2022									2023												2024
	Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter
	(yen amounts in billions)
Nominal Gross Domestic Expenditures(b)	¥	562,035		¥	558,977		¥	569,768		¥	582,824		¥	597,053		¥	595,187		¥	598,783		¥	597,414
Real Gross Domestic Expenditures(b)(c)	¥	551,948		¥	550,893		¥	552,903		¥	559,271		¥	564,406		¥	558,676		¥	558,761		¥	554,728
Percentage Changes of GDP from the Previous Quarter At Nominal Prices(d)		1.0	%		-0.5	%		1.9	%		2.3	%		2.4	%		-0.3	%		0.6	%		-0.2	%
At Real Prices(c)(d)		1.2			-0.2			0.4			1.2			0.9			-1.0			0.0			-0.7
Deflator(e)		-0.2			-0.4			1.6			1.1			1.5			0.7			0.6			0.5

(a) Quarterly GDP financial data are subject to change.

(b) Numbers are based on seasonally-adjusted GDP figures.

(c) Real prices are based on calendar year 2015.

(d) Percentage changes are based on seasonally-adjusted GDP figures.

(e) Deflator is a price index used to convert nominal prices into real prices. Deflator is derived by dividing nominal GDP by real GDP.

Source: Economic and Social Research Institute, Cabinet Office.

Per Capita Gross Domestic Product

The following table indicates per capita gross domestic product for the last five years.

	Per Capita GDP
JFY	Amount (in thousands of yen)		Year-on- year change (%)
2018	¥	4,392		0.3
2019		4,401		0.2
2020		4,272		-2.9
2021		4,411		3.2
2022		4,535		2.8

National Income

The following table sets forth national income for calendar year 2018 through calendar year 2022.

	National Income
	2018			2019			2020			2021			2022
	(yen amounts in billions)
Domestic Factor Income	¥	381,191		¥	379,551		¥	359,102		¥	366,786		¥	369,138
Net Income from Abroad		21,289			21,857			19,798			26,414			34,018
National Income at Factor Cost	¥	402,481		¥	401,408		¥	378,900		¥	393,200		¥	403,156
Percentage Changes of Income at Factor Cost from Previous Year		0.4	%		(0.3	)%		(5.6	)%		3.8	%		2.5	%

Source: Economic and Social Research Institute, Cabinet Office.

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Industry

The following table sets forth the proportion of gross domestic product contributed by major industrial sectors of the economy for calendar year 2018 through calendar year 2022.

GDP by Industrial Sectors (at nominal prices)

	2018			2019			2020			2021			2022
Industry
Agriculture, forestry and fishing		1.0	%		1.0	%		1.0	%		1.0	%		1.0	%
Mining		0.1			0.1			0.1			0.1			0.1
Manufacturing		20.6			20.2			20.1			20.9			19.2
Electricity, gas and water supply and waste management service		2.9			3.1			3.2			2.8			2.4
Construction		5.4			5.5			5.7			5.6			5.2
Wholesale and retail trade		12.7			12.4			12.8			13.2			14.3
Transport and postal services		5.3			5.4			4.2			4.2			4.7
Accommodation and food service activities		2.6			2.5			1.7			1.3			1.6
Information and communications		4.9			4.9			5.1			5.0			4.9
Finance and insurance		4.1			4.0			4.2			4.2			4.5
Real estate		11.7			11.8			12.2			11.8			11.6
Professional, scientific and technical activities		8.1			8.3			8.7			8.8			9.1
Public administration		4.9			5.0			5.2			5.1			5.2
Education		3.4			3.5			3.5			3.5			3.4
Human health and social work activities		7.7			7.8			8.2			8.2			8.3
Other service activities		4.0			4.1			3.7			3.8			3.9
Total		99.5	%		99.5	%		99.6	%		99.4	%		99.3	%

Source: Economic and Social Research Institute, Cabinet Office, Annual Report on National Accounts.

Energy

The following table sets forth the total amounts of primary energy supplied and the percentages supplied by different sources for JFY 2018 through JFY 2022.

			Sources of Primary Energy Supplied(a)
JFY	Total Primary Energy Supplied (peta-joules)		Oil			Coal			Nuclear			Natural Gas			Other
2018(b)		19,697		37.5	%		25.1	%		2.8	%		22.9	%		11.6	%
2019(b)		19,126		37.1			25.3			2.8			22.4			12.4
2020(b)		17,959		36.5			24.6			1.8			23.8			13.3
2021(b)		18,715		36.1			25.7			3.2			21.4			13.6
2022(b)		18,314		36.1			25.7			2.6			21.5			14.0

(a) Figures represent the proportion of each source as a share of the domestic primary energy supplied. Domestic primary energy supplied is total primary energy supplied less exports and inventory adjustments.

(b) Standard heating value by energy source, which is used to create total primary energy supplied statistics, is revised every five years. Figures for 2018 through 2022 represent the revised standard heating value by energy source.

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry, Report on Energy Supply and Demand.

14 

Since JFY 2011, largely due to the effects of the Earthquake, the import of oil and natural gas as alternatives to nuclear energy increased significantly as the demand increased for power generation at thermal power stations.

The table below sets forth information regarding crude oil imports for JFY 2019 through JFY 2023.

	JFY 2019		JFY 2020		JFY 2021		JFY 2022		JFY 2023
Volume of imports (thousand kilo-liters per day)		470		385		406		435		396
Cost of imports (c.i.f. in billions of yen)	¥	7,980	¥	4,058	¥	8,078	¥	13,839	¥	11,294
Average price (c.i.f. in yen kilo-liters)	¥	46,389	¥	28,873	¥	54,575	¥	87,237	¥	77,875

Source: Customs and Tariff Bureau, Ministry of Finance.

Japan has historically depended on oil for most of its energy requirements and almost all its oil is imported, mostly from the Middle East. Oil price movements thus have a major impact on the domestic economy. Although the oil price significantly declined soon after the outbreak of COVID-19 in 2020, below ¥20,000 per kilo-liter in May 2020, it has steadily increased since then, as the world economy has gradually recovered from the impact of COVID-19. Recently, the oil price has increased sharply and remained high at ¥86,543 per kilo-liter in June 2024, in part due to the conflict between Russia and Ukraine and the resulting disruption in the oil supply.

The following table sets forth information relating to total electric power generating capacity and electric power generation for JFY 2018 through JFY 2022.

	JFY 2018		JFY 2019		JFY 2020		JFY 2021		JFY 2022
Electric power generating capacity(a):		(megawatts)
Fossil Fuel		193,026		189,784		191,758		188,256		187,879
Hydro-electric		50,037		50,033		50,033		50,009		50,008
Nuclear		38,042		33,083		33,083		33,083		33,083
Other		18,988		20,997		23,677		25,851		28,479
Total		300,093		293,897		298,550		297,197		299,450
Electric power generation:		(gigawatt-hours)
Fossil Fuel		823,589		792,810		789,725		776,326		758,485
Nuclear		62,109		61,035		37,011		67,767		53,524
Hydro-electric		87,398		86,314		86,310		87,632		85,034
Other		27,311		30,611		35,637		38,525		41,969
Total		1,000,409		970,771		948,979		970,249		939,025

(a) At the end of fiscal year — March 31

Source: Handbook of Electric Power Industry, Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry.

On October 26, 2020, former Prime Minister SUGA Yoshihide declared that Japan intends to achieve carbon neutrality by 2050. To this end, Japan aims to reduce greenhouse gas emissions to virtually zero by 2050 and realize a decarbonized society. On December 25, 2020, the government developed formulated a “Green Growth Strategy Through Achieving Carbon Neutrality in 2050,” which sets high goals for 14 key fields across energy, transportation/manufacturing and home/office industries. This strategy makes explicit current challenges and future actions by priority field, and formulates action plans covering comprehensive policies in areas such as budgets, taxes, regulation reforms and standardization, and international collaboration. In addition, on June 9, 2021, the government decided on a regional decarbonization roadmap that outlines the process and concrete measures for transitioning to decarbonized society. Based on this roadmap, the Japanese government intends to propagate decarbonization throughout Japan by creating at least 100 decarbonization leading areas by FY2030 and implementing priority measures that will serve as the foundation for decarbonization throughout Japan, especially through an intensive five-year period of policy implementation. The administration of the current Prime Minister, KISHIDA Fumio, has succeeded the policy of the former Prime Minister, SUGA Yoshihide. The Japanese government announced the “Basic Policy on Economic and Fiscal Management and Reform 2022” on June 7, 2022, which intends to focus on investment in green transformation (GX). The “Basic Policy on Economic and Fiscal Management and Reform 2023” announced on June 16, 2023 continues to focus on accelerating GX investments.

15 

Price Indices

The table below sets forth information concerning changes in Japan’s corporate goods and consumer price indices for the periods indicated.

	Corporate Goods Price Index(a)				Consumer Price Index(b)
	Index(c)		Annual % Change		Index		Annual % Change
2019		101.2		0.2		100.0		0.5
2020		100.0		-1.2		100.0		0.0
2021		104.6		4.6		99.8		-0.2
2022		114.9		9.8		102.3		2.5
2023		119.7		4.2		105.6		3.2

(a) All commodities. Calendar year 2020=100. Source: Domestic Corporate Goods Price Index, Bank of Japan.

(b) General index. Calendar year 2020=100. Source: Consumer Price Index, Statistics Bureau, Ministry of Internal Affairs and Communications.

(c) Indices are calculated using the monthly averages.

Labor

The number of employees increased from 2004 to 2007 and decreased from 2008 to 2012. After recovering in 2013, the number of employees increased from 2014 to 2019, followed by a decrease in 2020, the first in eight years. Then it recovered and increased for three consecutive years from 2021 to 2023. In 2022, average employment was estimated at 67.2 million, of which 22.7% were employed in mining, manufacturing and construction, 3.0% were employed in agriculture, forestry and fisheries, and 74.3% were employed in services and other sectors. In 2023, the average employment was estimated at 67.5 million, of which 22.8% were employed in mining, manufacturing and construction, 2.9% were employed in agriculture, forestry and fisheries, and 74.2% in services and other sectors. The unemployment rate (seasonally adjusted) in Japan gradually increased from 2008 to the middle of 2009, but has gradually decreased since the end of 2009. The unemployment rate increased in 2020 for the first time in eleven years, decreased in 2022 for the first time in three years and then maintaining the same rate in 2023. It ranged between 2.5% and 2.7% during 2023. The seasonally adjusted unemployment rate was 2.4% for January, 2.6% for February, 2.6% for March, 2.6% for April and 2.6% for May in 2024, the most recent five months for which statistics are available. Concerning short-term prospects, employment conditions in Japan are expected to continue to improve as the implementation of various policies brought positive effects to the entire economy. However, both the duration and extent of the impact on employment in Japan remain highly uncertain.

The following table indicates unemployment statistics for Japan for each of the last five years:

Calendar Year	Unemployment Rate (%)
2019		2.4
2020		2.8
2021		2.8
2022		2.6
2023		2.6

Source: Ministry of Internal Affairs and Communications “Labor Force Survey”.

16 

The table below sets forth information regarding wage index (total cash earnings (nominal)) and industrial production index (manufacturing and mining) for the periods indicated.

	Wage Index(a)				Industrial Production Index(b)
	Index(c)		Annual % Change		Index		Annual % Change
2019		101.2		-0.4		111.6		-2.6
2020		100.0		-1.2		100.0		-10.4
2021		100.3		0.3		105.4		5.4
2022		102.3		2.0		105.3		-0.1
2023		103.5		1.2		103.9		-1.3

(a) Calendar year 2020=100. Source: Monthly Labor Survey, Ministry of Health, Labor and Welfare.

(b) Calendar year 2020=100. Source: Ministry of Economy, Trade and Industry.

(c) Indices are calculated using the monthly averages.

The following table shows selected employment information by industry.

	2019			2020			2021			2022			2023
	(all figures in percentages, except as indicated)
Employed persons (in thousands of persons)		67,500			67,100			67,130			67,230			67,470
Employment by Industry:
Agriculture, forestry and fisheries		3.29	%		3.17	%		3.10	%		3.05	%		2.95	%
Mining, manufacturing and construction		23.26			23.06			22.84			22.68			22.82
Services and other sectors		73.45			73.77			74.07			74.27			74.23
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Source: Ministry of Internal Affairs and Communications “Labor Force Survey”.

17 

The following table shows employment rate by age and gender.

	2019			2020			2021			2022			2023
	(all figures in percentages)
Total		60.6	%		60.3	%		60.4	%		60.9	%		61.2	%
Employment rate by age:
15 – 64 years old		77.7			77.3			77.7			78.4			78.9
15 – 24 years old		47.5			46.4			46.6			46.6			47.8
25 – 34 years old		85.3			85.1			86.0			86.6			86.8
35 – 44 years old		85.6			85.0			85.4			86.2			86.6
45 – 54 years old		86.4			86.0			86.0			86.6			86.8
55 – 64 years old		76.3			76.7			77.0			78.1			78.7
55 – 59 years old		82.3			82.2			82.1			82.8			83.1
60 – 64 years old		70.3			71.0			71.5			73.0			74.0
65 and over		24.9			25.1			25.1			25.2			25.2
65 – 69 years old		48.4			49.6			50.3			50.8			52.0
70 – 74 years old		32.2			32.5			32.6			33.5			34.0
75 and over		10.3			10.4			10.5			11.0			11.4
Employment rate by gender:
Male		69.7			69.3			69.1			69.4			69.5
Female		52.2			51.8			52.2			53.0			53.6

Source: Ministry of Internal Affairs and Communications “Labor Force Survey”.

The following table shows employment data by type of employment.

	2019		2020		2021		2022		2023
	(in thousands of persons)
Employee (except for executive of company or corporation)		56,880		56,550		56,620		56,890		57,300
Regular employee		35,150		35,560		35,870		35,880		36,060
Non-regular employee		21,730		21,000		20,750		21,010		21,240

Source: Ministry of Internal Affairs and Communications “Labor Force Survey”.

18 

Aging Workforce and Population Decrease

One of the risks that the Japanese economy bears is the issue of the aging of the population accompanied with an overall population decrease. Population aging and decrease have placed downward pressure on economic growth. The negative impact can be reduced by enhancing productivity and competitiveness through the further opening of the Japanese economy to the world. These trends have an impact not only on the macro growth rate but also on consumption patterns (such as the older generations spending more than younger generations on service consumption) and, consequently, the country’s economic structure.

The impact of the aging and shrinking population on Japan’s fiscal structure looms as a long-term risk. Social security benefit payments under the current system continues to increase. The ratio of pensions to national income are expected to remain at the same level, but that of welfare including medical benefits and nursing-care benefits have continuously increased and is expected to further grow. Population aging and decrease will thus modify the Japanese revenue structure. Furthermore, amid increasing capital mobility, it is imperative for Japan to foster an environment attractive to business enterprises. Under these circumstances, it has become more and more difficult to impose additional tax burdens on the income of individuals and corporations. The effects of the aging and shrinkage of the population would also be prominent in Japan’s regional economies.

The following table indicates the age distribution of Japan’s population:

Population and Percentage distribution by Age (5-Year Age Group)

	Both sex
Age groups	2019		2020		2021		2022		2023
	Population (in thousands of persons)
Total		126,167		126,146		125,502		124,947		124,352
0 – 4 years old		4,758		4,541		4,389		4,247		4,087
5 – 9		5,101		5,114		5,038		4,948		4,838
10 – 14		5,351		5,376		5,357		5,308		5,248
15 – 19		5,820		5,706		5,580		5,512		5,494
20 – 24		6,388		6,320		6,263		6,263		6,236
25 – 29		6,240		6,384		6,379		6,412		6,479
30 – 34		6,752		6,714		6,556		6,446		6,380
35 – 39		7,551		7,498		7,354		7,212		7,047
40 – 44		8,718		8,476		8,173		7,946		7,765
45 – 49		9,802		9,868		9,732		9,462		9,115
50 – 54		8,567		8,738		9,252		9,435		9,650
55 – 59		7,711		7,940		7,824		8,075		8,279
60 – 64		7,523		7,442		7,391		7,445		7,507
65 – 69		8,709		8,236		7,869		7,535		7,332
70 – 74		8,686		9,189		9,672		9,337		8,817
75 – 79		7,241		7,065		6,712		7,030		7,474
80 – 84		5,328		5,404		5,563		5,743		5,895
85 – 89		3,612		3,742		3,872		3,955		3,979
90 – 94		1,761		1,811		1,904		1,989		2,045
95 – 99		479		500		537		561		597
100 and over		69		80		85		87		87
Regrouped
0 – 14 years old		15,210		15,032		14,784		14,503		14,173
15 – 64		75,072		75,088		74,504		74,208		73,952
65 and over		35,885		36,027		36,214		36,236		36,227
65 – 74 years old		17,395		17,425		17,540		16,872		16,149
75 and over		18,490		18,602		18,674		19,364		20,078

19 

	Both sex
Age groups	2019		2020		2021		2022		2023
	Percentage Distribution (%)
Total		100.00		100.00		100.00		100.00		100.00
0 – 4 years old		3.77		3.60		3.50		3.40		3.29
5 – 9		4.04		4.05		4.01		3.96		3.89
10 – 14		4.24		4.26		4.27		4.25		4.22
15 – 19		4.61		4.52		4.45		4.41		4.42
20 – 24		5.06		5.01		4.99		5.01		5.01
25 – 29		4.95		5.06		5.08		5.13		5.21
30 – 34		5.35		5.32		5.22		5.16		5.13
35 – 39		5.98		5.94		5.86		5.77		5.67
40 – 44		6.91		6.72		6.51		6.36		6.24
45 – 49		7.77		7.82		7.75		7.57		7.33
50 – 54		6.79		6.93		7.37		7.55		7.76
55 – 59		6.11		6.29		6.23		6.46		6.66
60 – 64		5.96		5.90		5.89		5.96		6.04
65 – 69		6.90		6.53		6.27		6.03		5.90
70 – 74		6.88		7.28		7.71		7.47		7.09
75 – 79		5.74		5.60		5.35		5.63		6.01
80 – 84		4.22		4.28		4.43		4.60		4.74
85 – 89		2.86		2.97		3.09		3.17		3.20
90 – 94		1.40		1.44		1.52		1.59		1.64
95 – 99		0.38		0.40		0.43		0.45		0.48
100 and over		0.05		0.06		0.07		0.07		0.07
Regrouped
0 – 14 years old		12.06		11.92		11.78		11.61		11.40
15 – 64		59.50		59.52		59.36		59.39		59.47
65 and over		28.44		28.56		28.86		29.00		29.13
65 – 74 years old		13.79		13.81		13.98		13.50		12.99
75 and over		14.66		14.75		14.88		15.50		16.15

If the population of Japan continues to decrease, it may have a material adverse impact on Japan’s overall socioeconomics in the future, including with respect to economic scale, standard of living and sustainability of the social security system.

20 

FOREIGN TRADE AND BALANCE OF PAYMENTS

Foreign Trade

In 2022, Japan had a trade deficit of ¥20,330 billion due to an increase in imports including crude oil and coal, which was partially offset by an increase in exports including automobiles and mineral fuel. In 2023, Japan had a trade deficit of ¥9,322 billion reflecting an increase in exports automobiles and machinery for construction and mining, which was partially offset by a decrease in imports including crude oil and coal. However, potential international trade disruptions resulting from the conflict between Russia and Ukraine on exports, imports and the overall trade balance is highly uncertain.

The following tables set forth information relating to foreign trade for the years indicated. In these tables exports are stated on a free on board (“f.o.b.”) basis and imports on a cost insurance and freight (“c.i.f.”) basis. Monetary figures are based on actual movements of goods as calculated by the Ministry of Finance. (This method of computation differs from that used in calculating balance of payments, in which both exports and imports are stated on an f.o.b. basis.)

Foreign Trade of Japan

	Value Index(a)		Quantum Index(a)		Unit Value Index(a)		Terms of Trade(b)
	Exports	Imports	Exports	Imports	Exports	Imports	Index
2019	112.5	115.6	113.2	106.9	99.3	108.2	91.8
2020	100.0	100.0	100.0	100.0	100.0	100.0	100.0
2021	121.5	124.8	110.7	104.8	109.7	119.1	92.1
2022	143.5	174.2	110.0	104.4	130.4	166.9	78.1
2023	147.5	162.0	105.7	99.3	139.5	163.1	85.5

(a) Calendar year 2020=100.

(b) Unit value index of exports divided by unit value index of imports, multiplied by 100.

Source: Japan Tariff Association, Ministry of Finance.

21 

Composition of Japan’s Exports and Imports

	2019				2020				2021				2022				2023
	(yen amounts in billions)
JAPAN’S EXPORTS
Textile Products	¥	886	1.2	%	¥	754	1.1	%	¥	862	1.0	%	¥	1,003	1.0	%	¥	1,036	1.0	%
Metals and Metal Products		5,659	7.4			5,204	7.6			7,140	8.6			8,556	8.7			8,275	8.2
Machinery and Equipment:
Ships		1,493	1.9			1,142	1.7			1,050	1.3			1,157	1.2			1,350	1.3
Motor Vehicles		11,971	15.6			9,580	14.0			10,722	12.9			13,012	13.3			17,265	17.1
TV and Radio Receivers		116	0.2			89	0.1			96	0.1			72	0.1			81	0.1
Motorcycles		267	0.3			225	0.3			307	0.4			414	0.4			492	0.5
Scientific and Optical Instruments		2,130	2.8			1,968	2.9			2,322	2.8			2,511	2.6			2,497	2.5
Other(a)		32,700	42.5			29,532	43.2			35,803	43.1			40,751	41.5			39,740	39.4
Total Machinery and Equipment		48,678	63.3			42,536	62.2			50,300	60.5			57,917	59.0			61,425	60.9
Chemicals		8,739	11.4			8,534	12.5			10,552	12.7			11,794	12.0			11,024	10.9
Foods and Beverages		754	1.0			790	1.2			992	1.2			1,137	1.2			1,127	1.1
Other Exports(b)		12,216	15.9			10,581	15.5			13,244	15.9			17,767	18.1			17,987	17.8
Grand Total	¥	76,932	100.0	%	¥	68,399	100.0	%	¥	83,091	100.0	%	¥	98,174	100.0	%	¥	100,874	100.0	%
JAPAN’S IMPORTS
Foods and Beverages	¥	7,192	9.1	%	¥	6,679	9.8	%	¥	7,383	8.7	%	¥	9,494	8.0	%	¥	9,339	8.5	%
Raw Materials		4,861	6.2			4,682	6.9			6,936	8.2			8,150	6.9			7,186	6.5
Chemicals		8,163	10.4			7,859	11.6			9,769	11.5			13,331	11.2			11,548	10.5
Mineral Fuels:
Petroleum		7,969	10.1			4,646	6.8			6,929	8.2			13,453	11.4			11,364	10.3
Coal		2,528	3.2			1,708	2.5			2,801	3.3			7,820	6.6			5,861	5.3
Other(c)		6,453	8.2			4,900	7.2			7,277	8.6			12,426	10.5			10,109	9.2
Total Mineral Fuel		16,951	21.6			11,254	16.5			17,007	20.0			33,699	28.4			27,334	24.8
Machinery and Equipment		25,319	32.2			22,973	33.8			26,766	31.5			32,554	27.5			34,381	31.2
Other Imports(d)		16,114	20.5			14,564	21.4			17,014	20.0			21,275	18.0			20,409	18.5
Grand Total	¥	78,600	100.0	%	¥	68,011	100.0	%	¥	84,875	100.0	%	¥	118,503	100.0	%	¥	110,196	100.0	%

(a) This category includes general machinery, electronic components including semiconductors and electronic equipment including electronic circuit.

(b) This category includes raw materials, mineral fuels and vehicle parts.

(c) This category includes liquid natural gas and petroleum products.

(d) This category includes clothing and accessories thereof, non-ferrous metal and scientific and optical instruments.

Source: The Summary Report on Trade of Japan, Japan Tariff Association, Ministry of Finance.

22 

Geographic Distribution of Japan’s Exports and Imports

	2019				2020				2021				2022				2023
	(yen amounts in billions)
JAPAN’S EXPORTS
Asia	¥	41,327	53.7	%	¥	39,220	57.3	%	¥	48,158	58.0	%	¥	55,406	56.4	%	¥	52,498	52.0	%
China		14,682	19.1			15,082	22.1			17,984	21.6			19,004	19.4			17,764	17.6
(Asia NIES)		15,597	20.3			14,808	21.6			17,849	21.5			21,256	21.7			19,808	19.6
(ASEAN)		11,578	15.1			9,843	14.4			12,461	15.0			15,544	15.8			14,718	14.6
Oceania		2,053	2.7			1,688	2.5			2,194	2.6			2,816	2.9			3,019	3.0
Australia		1,580	2.1			1,295	1.9			1,675	2.0			2,173	2.2			2,356	2.3
North America		16,222	21.1			13,384	19.6			15,748	19.0			19,387	19.7			21,797	21.6
U.S.A.		15,255	19.8			12,611	18.4			14,832	17.8			18,255	18.6			20,260	20.1
Canada		968	1.3			773	1.1			917	1.1			1,132	1.2			1,537	1.5
Central and South America		3,221	4.2			2,285	3.3			3,086	3.7			3,737	3.8			4,352	4.3
Western Europe		9,010	11.7			7,651	11.2			8,851	10.7			10,741	10.9			12,232	12.1
EU(a)		8,955	11.6			6,460	9.4			7,668	9.2			9,358	9.5			10,374	10.3
Central and Eastern Europe, Russia etc.		1,757	2.3			1,514	2.2			1,946	2.3			2,034	2.1			2,026	2.0
Russia		783	1.0			628	0.9			862	1.0			604	0.6			396	0.4
Middle East		2,356	3.1			1,809	2.6			2,052	2.5			2,782	2.8			3,552	3.5
Africa		984	1.3			848	1.2			1,055	1.3			1,272	1.3			1,399	1.4
Total	¥	76,932	100.0	%	¥	68,399	100.0	%	¥	83,091	100.0	%	¥	98,174	100.0	%	¥	100,874	100.0	%
JAPAN’S IMPORTS
Asia	¥	37,413	47.6	%	¥	34,678	51.0	%	¥	41,079	48.4	%	¥	53,401	45.1	%	¥	51,986	47.2	%
China		18,454	23.5			17,508	25.7			20,382	24.0			24,850	21.0			24,420	22.2
(Asia NIES)		7,231	9.2			6,706	9.9			8,293	9.8			10,956	9.2			10,778	9.8
(ASEAN)		11,757	15.0			10,678	15.7			12,483	14.7			17,715	14.9			16,905	15.3
Oceania		5,587	7.1			4,359	6.4			6,434	7.6			12,693	10.7			9,969	9.0
Australia		4,958	6.3			3,831	5.6			5,753	6.8			11,622	9.8			9,092	8.3
North America		9,935	12.6			8,631	12.7			10,430	12.3			13,945	11.8			13,590	12.3
U.S.A.		8,640	11.0			7,454	11.0			8,916	10.5			11,759	9.9			11,547	10.5
Canada		1,286	1.6			1,169	1.7			1,507	1.8			2,175	1.8			2,033	1.8
Central and South America		3,169	4.0			2,998	4.4			3,679	4.3			4,854	4.1			4,724	4.3
Western Europe		10,394	13.2			9,021	13.3			10,860	12.8			13,037	11.0			13,019	11.8
EU(a)		9,722	12.4			7,832	11.5			9,453	11.1			11,446	9.7			11,301	10.3
Central and Eastern Europe, Russia etc.		2,333	3.0			1,843	2.7			2,375	2.8			2,985	2.5			2,059	1.9
Russia		1,561	2.0			1,145	1.7			1,552	1.8			1,972	1.7			1,037	0.9
Middle East		8,852	11.3			5,558	8.2			8,471	10.0			15,608	13.2			13,330	12.1
Africa		918	1.2			922	1.4			1,531	1.8			1,981	1.7			1,518	1.4
Grand Total	¥	78,600	100.0	%	¥	68,011	100.0	%	¥	84,875	100.0	%	¥	118,503	100.0	%	¥	110,196	100.0	%

Source: Press Releases, Ministry of Finance.

(a) Data after February 2020 does not include the United Kingdom, as the United Kingdom exited the European Union (EU) on January 31, 2020.

23 

Balance of Payments

In 2023, Current Account surplus increased to ¥21,381 billion, mainly due to an increase in exports reflecting increased exports of automobiles, construction and mining equipment, and ships, and a decrease in imports reflecting decreases in energy prices throughout the year.

Balance of Payments of Japan

	2019		2020		2021		2022		2023
	(in billions of yen)
Current Account	¥	19,251	¥	15,992	¥	21,467	¥	11,449	¥	21,381
Balance on Goods and Services		-932		-877		-2,483		-21,067		-9,417
Trade Balance		150		2,778		1,762		-15,511		-6,501
Exports (f.o.b.)		75,775		67,263		82,353		98,858		100,355
Imports (f.o.b.)		75,625		64,485		80,590		114,369		106,856
Services		-1,082		-3,655		-4,246		-5,556		-2,916
Primary Income(a)		21,553		19,439		26,309		35,048		34,924
Secondary Income(b)		-1,370		-2,570		-2,359		-2,533		-4,126
Capital Account		-413		-207		-423		-114		-400
Financial Account(c)		24,862		14,125		16,768		6,425		23,304
Assets		-9,883		-15,143		-13,295		-44,011		-48,411
Liabilities		-34,745		-29,268		-30,063		-50,436		-71,715
Net Errors and Omissions		6,024		-1,659		-4,276		-4,909		2,323

(a) Primary Income mainly shows balance of payments of interests and dividends from external financial credits and debts and includes such items as receipt and payment of dividends and interests between parent companies and their subsidiaries, receipt and payment of stock dividends and bond interests, and receipt and payment of interests related to loans, borrowings, and deposits.

(b) Secondary Income shows balance of payments of provision of assets unaccompanied by consideration between residents and non-residents and includes such items as receipt and payment of financial support, donations, and gifts by the government or by the people.

(c) Positive figures (+) show increases in net assets, negative figures (-) show decreases in net assets in “Financial Account”.

Source: Balance of Payments, Ministry of Finance.

Official Reserves Assets

As of December 31,	Gold(a)		Foreign Currency Reserves		IMF Reserve Position		SDRs (Special Drawing Rights)		Other Reserve Assets		Total
	(in millions of dollars)
2019	$	37,469	$	1,255,322	$	11,202	$	19,176	$	581	$	1,323,750
2020		46,526		1,312,160		15,147		20,215		632		1,394,680
2021		49,505		1,278,925		10,643		62,330		4,347		1,405,750
2022		49,295		1,103,907		10,817		59,275		4,282		1,227,576
2023		56,095		1,159,849		10,597		57,508		10,588		1,294,637

(a) The valuation of gold reflects marked-to-market values.

Source: International Reserves/Foreign Currency Liquidity, Ministry of Finance.

24 

Foreign Exchange Rates

The following table sets forth the high, low and average daily interbank rate for the U.S. dollar against the yen in the Tokyo foreign exchange market for the years indicated.

	2019		2020		2021		2022		2023
Average (Central Rate)	¥	108.99	¥	106.73	¥	109.89	¥	131.57	¥	140.59
High		112.24		112.18		115.45		150.48		151.80
Low		104.46		101.60		102.60		113.63		127.22

Source: Status of Transactions on Tokyo Foreign Exchange Market, Bank of Japan.

In recent months, the exchange rate for the U.S. dollar against the yen has sharply increased. As of August 2, 2024, the spot buying rate quoted on the Tokyo foreign exchange market as reported by the BOJ at 5:00 p.m., Tokyo time, was ¥149.21 = $1.00, and the noon buying rate on July 26, 2024 for cable transfers in New York City payable in yen, as reported by the Federal Reserve Bank of New York, was ¥153.86 = $1.00.

Foreign exchange intervention is conducted to influence foreign exchange rates by buying and selling currencies in the foreign exchange market. In Japan, foreign exchange intervention is to be carried out under the authority of the Minister of Finance. The BOJ conducts foreign exchange interventions on behalf of and at the instruction of the minister. When the minister deems it necessary to intervene in the foreign exchange market, the Ministry of Finance gives the BOJ specific instructions for foreign exchange intervention. With respect to funding, as foreign exchange intervention involves buying and selling currencies, it requires funds such as Japanese yen and U.S. dollars. In Japan, the Foreign Exchange Fund Special Account (FEFSA), which falls under the jurisdiction of the Ministry of Finance, is used for foreign exchange intervention.

The total amount of foreign exchange intervention operations by the Ministry of Finance for the period from August 30, 2022 through October 27, 2022 was ¥9,188.1 billion. Following such operations, Japan’s reserve assets totaled $1,194,568 million as of October 31, 2022, down $97,504 million from the end of August. The total amount of foreign exchange intervention operations by the Ministry of Finance for the period from April 26, 2024 through May 29, 2024 was ¥9,788.5 billion. Following such operations, Japan’s reserve assets totaled $1,231,572 million as of May 31, 2024, down $47,405 million from the end of April. As of June 30, 2024, Japan’s reserve assets totaled $1,231,495 million.

Foreign Direct Investment

The following table sets forth information regarding annual foreign direct investment in Japan and annual foreign direct investment abroad for the periods indicated.

Foreign direct investment in Japan (by industry)^(a)

	2019		2020		2021		2022		2023
	(in billions of yen)
Manufacturing (total)(b)	¥	606.7	¥	258.2	¥	1,804.8	¥	1,615.0	¥	1,582.7
Food		58.2		-43.9		28.3		-33.7		28.6
Textile		2.7		4.2		6.5		11.2		8.5
Lumber and pulp		2.3		0.9		8.6		2.6		1.5
Chemicals and pharmaceuticals		120.9		90.8		1,586.9		447.1		493.3
Petroleum		-93.7		6.6		5.2		-18.4		-0.3
Rubber and leather		—		-0.6		-0.8		1.5		2.0
Glass and ceramics		-17.3		25.4		-3.8		14.4		16.7
Iron, non-ferrous, and metals		12.1		2.9		7.9		371.3		0.4
General machinery		-53.0		20.9		-8.0		91.6		44.5
Electric machinery		327.5		134.2		287.5		389.4		493.5
Transportation equipment		244.0		27.9		-109.5		321.5		256.0
Precision machinery		-10.1		5.5		-5.3		4.3		242.7

25 

	2019		2020		2021		2022		2023
	(in billions of yen)
Non-manufacturing (total)(c)		892.8		998.4		1,959.1		2,881.5		1,428.5
Farming and forestry		0.5		0.3		0.4		0.5		0.5
Fishery and marine products		0.9		1.2		1.1		3.7		2.6
Mining		4.2		1.5		5.4		2.3		-10.8
Construction		20.1		0.6		15.5		-12.5		-16.0
Transportation		23.1		21.5		219.7		700.4		197.5
Communications		-30.7		-38.5		369.7		503.3		42.6
Wholesale and retail		-680.9		-72.2		-11.9		113.5		439.4
Finance and insurance		1,301.1		955.2		1,177.5		1,157.4		749.3
Real estate		32.7		-29.0		-69.8		-5.6		29.5
Services		137.8		88.4		76.9		231.5		-5.0
Total	¥	1,499.5	¥	1,256.5	¥	3,763.9	¥	4,496.5	¥	3,011.2

(a) Starting with transactions recognized in January 2014, the BOJ began using the Sixth Edition of “Balance of Payments and International Investment Position Manual” (BPM6) released by International Monetary Fund in 2008 to calculate the data provided in this table.

(b) The total amounts for Manufacturing include other types of manufacturing not separately listed in the table and therefore are different from the sum of listed subcategories of manufacturing.

(c) The total amounts for Non-manufacturing include other industries not separately listed in the table and therefore are different from the sum of listed subcategories of Non-manufacturing industries.

Source: Outward / Inward Direct Investment, breakdown by Region and Industry, Ministry of Finance.

26 

Foreign direct investment in Japan (by region)^(a)

	2019		2020		2021		2022		2023
	(in billions of yen)
North America	¥	1,386.2	¥	498.6	¥	922.7	¥	1,809.6	¥	958.4
Asia		553.3		527.6		2,095.4		1,371.0		1,141.7
Europe		-688.2		274.2		214.4		741.3		730.5
Other regions		248.0		-43.8		531.4		574.6		180.6
Total	¥	1,499.5	¥	1,256.5	¥	3,763.9	¥	4,496.5	¥	3,011.2

(a) Starting with transactions recognized in January 2014, the BOJ began using the Sixth Edition of “Balance of Payments and International Investment Position Manual” (BPM6) released by International Monetary Fund in 2008 to calculate the data provided in this table.

Source: Outward / Inward Direct Investment, breakdown by Region and Industry, Ministry of Finance.

Foreign direct investment abroad (by industry)^(a)

	2019		2020		2021		2022		2023
	(in billions of yen)
Manufacturing (total)(b)	¥	11,344.9	¥	1,703.6	¥	5,677.3	¥	7,157.6	¥	8,993.6
Food		581.9		1,739.7		585.4		639.5		1,273.2
Textile		70.7		41.7		38.2		27.7		83.8
Lumber and pulp		138.7		251.3		105.1		195.0		237.8
Chemicals and pharmaceuticals		4,593.9		-3,438.7		1,674.8		1,386.2		2,659.3
Petroleum		20.5		25.6		52.1		37.1		40.0
Rubber and leather		213.1		87.7		68.5		313.7		595.5
Glass and ceramics		233.9		143.5		107.3		173.1		131.1
Iron, non-ferrous, and metals		443.5		205.4		470.1		491.5		651.4
General machinery		714.4		-217.7		770.6		1,129.1		825.9
Electric machinery		1,391.7		1,405.9		873.5		741.8		1,025.7
Transportation equipment		2,437.3		1,201.6		598.9		1,417.2		1,034.4
Precision machinery		306.1		117.2		135.7		351.8		177.4
Non-manufacturing (total)(c)		14,013.7		8,942.7		17,259.8		14,161.7		16,859.9
Farming and forestry		6.2		39.7		16.8		62.3		43.5
Fishery and marine products		3.7		0.3		-0.3		7.1		5.3
Mining		1,060.1		267.4		1,114.5		1,765.9		2,320.1
Construction		202.5		103.0		89.6		178.2		253.2
Transportation		239.9		122.8		213.8		503.4		468.1
Communications		636.0		-2,628.3		1,981.5		667.2		821.1
Wholesale and retail		6,311.8		4,019.1		5,756.0		4,261.9		5,383.4
Finance and insurance		4,018.4		5,496.3		6,327.9		4,286.7		4,134.5
Real estate		1,173.6		226.6		527.3		547.5		1,300.5
Services		-189.7		602.2		446.0		1,172.9		1,088.8
Total	¥	25,358.6	¥	10,646.3	¥	22,937.1	¥	21,319.3	¥	25,853.5

(a) Starting with transactions recognized in January 2014, the BOJ began using the Sixth Edition of “Balance of Payments and International Investment Position Manual” (BPM6) released by International Monetary Fund in 2008 to calculate the data provided in this table.

(b) The total amounts for Manufacturing include other types of manufacturing not separately listed in the table and therefore are different from the sum of listed subcategories of manufacturing.

(c) The total amounts for Non-manufacturing include other industries not separately listed in the table and therefore are different from the sum of listed subcategories of Non-manufacturing industries.

Source: Outward / Inward Direct Investment, breakdown by Region and Industry, Ministry of Finance.

27 

Foreign direct investment abroad (by region)^(a)

	2019		2020		2021		2022		2023
	(in billions of yen)
North America	¥	5,551.2	¥	5,986.6	¥	9,033.3	¥	8,724.8	¥	10,151.3
Asia		5,540.7		3,395.8		6,602.3		4,501.8		4,163.0
Europe		11,603.4		-1,357.3		5,524.7		4,520.8		6,746.4
Other regions		2,663.3		2,621.2		1,776.7		3,571.9		4,792.8
Total	¥	25,358.6	¥	10,646.3	¥	22,937.1	¥	21,319.3	¥	25,853.5

(a) Starting with transactions recognized in January 2014, the BOJ began using the Sixth Edition of “Balance of Payments and International Investment Position Manual” (BPM6) released by International Monetary Fund in 2008 to calculate the data provided in this table.

Source: Outward / Inward Direct Investment, breakdown by Region and Industry, Ministry of Finance.

28 

FINANCIAL SYSTEM

The BOJ and Monetary Policy

The BOJ, with 55% of its capital owned by the government, is the central bank and sole issuing bank, as well as the depository and fiscal agent for the government. As of the end of March 2024, the BOJ had total assets of ¥756,423 billion.

In a statement released on March 19, 2024, noting that the price stability target of 2% would likely be achieved in a sustainable and stable manner toward the end of the projection period of the January 2024 Outlook Report, titled Outlook for Economic Activity and Prices, the BOJ announced that it would end its policy framework of quantitative and qualitative monetary easing (QQE) with yield curve control and the negative interest rate policy, and that it would conduct monetary policy as appropriate, guiding the short-term interest rate as a primary policy tool, in response to developments in economic activity and prices as well as financial conditions with the 2% price stability target. The BOJ noted that it would conduct market operations to encourage the uncollateralized overnight call rate to remain at around 0.0% to 0.1% by applying an interest rate of 0.1% to current account balances held by financial institutions at the BOJ (excluding required reserve balances). In addition, while continuing Japanese government bond purchases with broadly the same amounts as previous, the BOJ announced that it would discontinue purchases of exchange-traded funds (ETFs) and Japanese real estate investment trusts (J-REITs). On April 26, 2024, the BOJ further announced that it would continue to conduct market operations to encourage the uncollateralized overnight call rate to remain at around 0.0% to 0.1% for the interim period until the next Monetary Policy Meeting.

The following table sets forth the principal economic indicators relating to monetary policy from 2019 through 2023.

	Current Account Balances(a)		Monetary Base				Money Stock				Loans and Bills Discounts Domestically Licensed Banks
			Total(a)		Annual % Change		Total(a)		Annual % Change		Total(a)		Annual % Change
	(yen amounts in billions)
2019		396,404		509,008		3.6		1,026,190		2.4		500,517		2.5
2020		438,051		555,229		9.0		1,092,598		6.5		524,164		4.7
2021		521,752		643,496		16.2		1,162,665		6.5		536,911		2.4
2022		528,008		653,203		1.6		1,201,202		3.3		550,559		2.5
2023		537,246		663,655		1.8		1,231,152		2.5		573,597		4.2

(a) Average amounts outstanding.

Source: Bank of Japan Statistics, Bank of Japan.

Government Financial Institutions

The activities of private institutions are supplemented by a number of financial institutions under government supervision, the appointment of whose senior officials is subject to approval by the government and whose funds are supplied principally or partially by the government. Among these are Japan Finance Corporation (“JFC”), the successor to National Life Finance Corporation (“NLFC”), Japan Finance Corporation for Small and Medium Enterprise (“JASME”), and Agriculture, Forestry and Fisheries Finance Corporation (“AFC”), whose main purposes are to contribute to the improvement of the quality of the national life. They also include Japan Bank for International Cooperation (“JBIC”) and The Okinawa Development Finance Corporation, whose purposes are to supplement private financing in their respective fields of activity, and Development Bank of Japan Inc. (“DBJ”) and The Shoko Chukin Bank Ltd., which will be privatized.

The central government has been steadily promoting reform of governmental financial institutions. The “Outline of Administrative Reforms” decided by the Cabinet on December 1, 2000, requires that the businesses and organizational forms of all special public institutions, which include governmental financial institutions, undergo a thorough review. Pursuant to the Act on Promotion of Administrative Reform for Realization of Small and Efficient Government, which was enacted on May 26, 2006, (1) the former Development Bank of Japan was succeeded to by DBJ as of October 1, 2008, which is currently wholly owned by the Japanese government and will be privatized as well as The Shoko Chukin Bank Ltd., (2) the international financial operations of JBIC, together with the functions of NLFC, JASME, AFC were transferred to JFC as of October 1, 2008, and the overseas economic cooperation operations of JBIC were transferred to the Japan International Cooperation Agency, and (3) as of October 1, 2008, Japan Finance Corporation for Municipal Enterprises was succeeded by Japan Finance Organization for Municipalities, which is funded by local governments. Each of these measures was implemented through individual laws that were enacted in 2007, pursuant to which these successor institutions were formed on October 1, 2008.

29 

With regard to (1) above, as originally enacted, the Development Bank of Japan Inc. Act (Act No. 85 of 2007), as amended (the “DBJ Act”), contemplated full privatization of DBJ over a period of five to seven years from its establishment on October 1, 2008. During that period, the DBJ Act (as originally enacted) provided that the Japanese government would dispose of all of the common stock of DBJ (the “full privatization”), and that steps would be taken to abolish this act promptly after the full privatization. On June 26, 2009, the Japanese Diet approved the Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 67 of 2009) (the “2009 Amendment Act”), which, as part of the Japanese government’s response to economic and financial crises, enables the Japanese government to strengthen DBJ’s financial base through capital injections up to the end of March 2012. In addition, under the 2009 Amendment Act, the targeted timing for the full privatization of DBJ had been extended to approximately five to seven years from April 1, 2012. Further, the 2009 Amendment Act provided that the Japanese government was to review the organization of DBJ, including whether the Japanese government should keep holding the DBJ shares, by the end of fiscal year 2011, and until then, the Japanese government should not be disposing of the DBJ’s shares. Additionally, on May 2, 2011, in order to address the Earthquake, the Japanese Diet approved the Act for Extraordinary Expenditure and Assistance to Cope with the Great East Earthquake (Act No. 40 of 2011) (the “Extraordinary Expenditure Act”). The Extraordinary Expenditure Act enabled the Japanese government to strengthen DBJ’s financial base through capital injection by March 2015 so that DBJ could smoothly implement its crisis response operations. In addition, under Extraordinary Expenditure Act, the targeted timing for the full privatization of DBJ had been extended to approximately five to seven years from April 1, 2015. Further, the Extraordinary Expenditure Act provided that the Japanese government was to review the organization of DBJ, including whether the Japanese government should keep holding the DBJ’s shares by the end of fiscal year 2014, and until such time, the Japanese government shall not dispose of the DBJ’s shares. On May 13, 2015, the Japanese Diet approved the Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 23 of 2015) (the “2015 Amendment Act”), under which the specific targeted timing for the full privatization of DBJ was withdrawn, taking into consideration the current business environment in the private financial sector. The 2015 Amendment Act allowed DBJ to take actions necessary for implementation of the crisis response operations and supply of growth capital by utilizing its investment and loan functions — that is, DBJ would take possible measures to supply funds to deal with large-scale disasters, economic crises and so forth, and to promote the supply of growth capital to revitalize regional economies and to reinforce the competitiveness of enterprises. In order to assure implementation of the necessary operations, under the 2015 Amendment Act, the Japanese government shall maintain its stake in excess of one-third for DBJ’s crisis response operations, and one half or more for DBJ’s special investment operations, for as long as the government shall take such measures. Furthermore, on May 22, 2020, the Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 29 of 2020) was promulgated, under which the duration of DBJ’s special investment operations has been extended by five years.

With regard to (2) above, The Japan Bank for International Cooperation Act (the “JBIC Act”) was passed into law on April 28, 2011 to spin off the Japan Bank for International Cooperation Operations from the domestic financial operations of the Japan Finance Corporation. Pursuant to the JBIC Act, Japan Bank for International Cooperation was newly established on April 1, 2012.

Private Financial Institutions

According to the Financial Services Agency, as of May 1, 2024, the private banking system included four city banks, 13 trust banks, and 17 other banks, as well as 62 1st local banks as of May 1, 2021, 37 2nd local banks as of May 1, 2021 and the Saitama Resona Bank, which is categorized as neither a 1st nor 2nd local bank. In addition, 56 foreign banks had branches in Japan as of August 7, 2023.

There are also credit associations, credit cooperative associations, labor credit associations and the national federations of each of such associations, which are engaged mainly in making small business loans. Agricultural cooperatives, prefectural credit federations of such cooperatives and The Norinchukin Bank operate in the field of agricultural credit.

30 

GOVERNMENT FINANCE

Revenues, Expenditures and Budgets

The responsibility for the preparation of the budget and the administration of government finances rests with the Ministry of Finance. The fiscal year commences on April 1, and the Cabinet usually submits the budget to the Diet for its decision in January of the same year. Supplementary budgets revising the original budget may be submitted to the Diet from time to time during the fiscal year.

The fiscal and financial operations of the government and its agencies are budgeted and recorded in the following three sets of accounts:

· General Account.    The general account is used primarily to record operations in basic areas of governmental activity.

· Special Accounts.    The accounts of the central government consist of the general account and special accounts. Special accounts can be set up to carry out specific projects, to manage specific funds, and for other purposes. Special accounts can be set up when the government (i) implements a specific program such as insurance and public works, (ii) possesses and manages special funds such as Fiscal Loan Program Funds and Foreign Exchange Funds, and (iii) uses a certain revenue to secure a special expenditure and thus needs to deal with such revenue and expenditure on a separate basis from the general revenue and expenditure such as Local Allocation and Local Transfer Tax and Government Bonds Consolidation Funds. As of September 2023, the government had 13 special accounts.

· Government-Affiliated Agencies.    The government-affiliated agencies are fully-government-funded corporations established by the law which budget would be discussed in the Diet.

31 

The settlement of accounts for revenues and expenditures is made by the Ministry of Finance, based on reports submitted by the respective Ministers. The settlement of accounts is required by law to be audited annually in detail by the Board of Audit, an organ independent of the Cabinet, and submitted by the Cabinet to the Diet in the following fiscal year.

The following tables set forth information with respect to the General Account, the Special Accounts and the Government Affiliated Agencies for JFY 2018 through JFY 2023, and the initial budget for JFY 2024.

Summary of Consolidated General and Special Accounts^(a)

	JFY 2018		JFY 2019		JFY 2020		JFY 2021		JFY 2022		JFY 2023 (Provisional results as of December 31, 2023)		JFY 2024 Initial Budget
	(in billions of yen)
REVENUES
Total Revenues, General Account	¥	105,697	¥	109,162	¥	184,579	¥	169,403	¥	153,729	¥	145,543	¥	112,572
Total Revenues, Special Accounts		381,177		386,552		417,561		455,554		447,892		441,227		440,610
Less: Inter-Account Transactions(b)		243,007		244,423		248,863		302,306		296,356		302,490		291,915
Total Consolidated Revenues	¥	243,868	¥	251,292	¥	353,277	¥	322,651	¥	305,266	¥	284,280	¥	261,267
EXPENDITURES
Total Expenditures, General Account	¥	98,975	¥	101,366	¥	147,597	¥	144,650	¥	132,386	¥	144,261	¥	112,572
Total Expenditures, Special Accounts		368,936		374,170		404,519		441,081		432,354		432,679		436,036
Less: Inter-Account Transactions(b)		241,249		242,631		246,270		300,383		294,929		299,653		289,900
Total Consolidated Expenditures	¥	226,661	¥	232,905	¥	305,846	¥	285,348	¥	269,810	¥	277,287	¥	258,708
Surplus of Consolidated Revenues over Consolidated Expenditures	¥	17,206	¥	18,387	¥	47,431	¥	37,303	¥	35,456	¥	6,993	¥	2,559

(a) Because of the manner in which the government accounts are kept, it is not practicable to show a consolidation of the Government Affiliated Agencies with the General and Special Accounts.

(b) Inter-Account Transactions include transfers between the General Account and the Special Accounts, transfers between the Special Accounts, and transfers between sub- accounts of the Special Accounts.

Source: Budget, Ministry of Finance.

32 

General Account

	JFY 2018		JFY 2019		JFY 2020		JFY 2021		JFY 2022		JFY 2023 Revised Budget(a)		JFY 2024 Initial Budget
	(in billions of yen)
REVENUES
Tax and Stamp Revenues	¥	60,356	¥	58,442	¥	60,822	¥	67,038	¥	71,137	¥	69,611	¥	69,608
Carried-over Surplus		5,528		6,723		7,796		36,981		24,754		3,391		—
Government Bond Issues		34,395		36,582		108,554		57,655		50,479		44,498		35,449
Income from Operations		51		51		46		61		60		51		55
Gains from Deposition of Assets		268		226		293		319		369		691		229
Miscellaneous Receipts		5,098		7,139		7,068		7,349		6,930		9,339		7,230
Total Revenues	¥	105,697	¥	109,162	¥	184,579	¥	169,403	¥	153,729	¥	127,580	¥	112,572
EXPENDITURES
Local Allocation Tax Grants, etc.	¥	16,026	¥	16,032	¥	16,256	¥	19,558	¥	17,513	¥	17,181	¥	17,786
National Debt Service		22,529		22,286		22,326		24,589		23,870		25,675		27,009
Social Security		32,569		33,501		42,998		50,161		43,868		38,134		37,719
Public Works		6,913		7,610		8,413		8,600		8,126		8,313		6,083
Education and Science		5,748		5,911		9,194		7,956		8,669		8,507		5,472
National Defense		5,475		5,627		5,505		6,014		5,529		12,019		7,917
Former Military Personnel Pensions		241		202		169		140		113		97		77
Economic Assistance		642		653		763		669		900		793		504
Food Supply		1,122		1,121		1,498		1,772		1,947		1,701		1,262
Energy		973		1,049		1,027		1,267		2,001		1,028		833
Promotion of SMEs		525		779		16,257		9,944		3,396		735		169
Miscellaneous		6,212		6,596		23,190		13,980		16,453		10,397		5,740
Contingency funds for measures to address soaring crude oil and commodity prices and to set up environment for promoting wage increases		—		—		—		—		—		2,000		1,000
Contingency funds for Economic Emergency including the impact from the Ukraine crisis		—		—		—		—		—		500		—
Contingencies		—		—		—		—		—		500		1,000
Total Expenditures	¥	98,975	¥	101,366	¥	147,597	¥	144,650	¥	132,386	¥	127,580	¥	112,572
Surplus of Revenues over Expenditures	¥	6,723	¥	7,796	¥	36,981	¥	24,754	¥	21,344	¥	—	¥	—

(a) As of the date of this Annual Report on Form 18-K, details for the provisional results for JFY 2023 General Accounts are not available. Reflect the revised budget for JFY 2023 approved by the Diet on November 29, 2023.

Source: Budget, Ministry of Finance.

33 

Special Accounts

	JFY 2018				JFY 2019				JFY 2020				JFY 2021				JFY 2022				JFY 2023 Revised Budget(a)				JFY 2024 Initial Budget
	Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.
	(in billions of yen)
Fiscal Investment and Loan Program	¥	26,070	¥	25,175	¥	28,484	¥	27,873	¥	52,366	¥	51,967	¥	35,860	¥	35,346	¥	34,069	¥	33,378	¥	16,428	¥	16,272	¥	26,685	¥	26,641
Government Bonds Consolidation Fund		186,158		183,082		186,970		183,878		188,973		185,921		239,702		236,623		235,623		232,556		236,005		236,005		225,139		225,139
Foreign Exchange Fund		3,101		85		3,599		160		3,133		234		2,475		177		3,590		114		2,988		2,419		4,463		1,317
Local Allocation and Local Transfer Tax		52,483		51,596		51,985		51,488		51,978		50,829		55,326		53,632		53,624		51,778		52,349		50,707		52,574		51,867
Measure for Energy		10,613		10,158		10,887		10,377		11,155		10,618		11,649		10,914		11,893		11,021		15,397		15,397		15,996		15,996
Pensions		91,700		89,464		93,209		90,919		94,591		91,804		96,376		92,725		97,191		92,929		99,597		99,597		103,218		103,218
Stable Supply of Foodstuff		970		814		968		851		926		821		980		913		1,254		1,151		1,519		1,516		1,537		1,516
Debt Management of National Forest and Field Service		349		349		356		356		363		363		360		360		353		353		343		343		340		340
Automobile Safety		672		451		684		500		651		434		559		395		569		426		523		458		523		460
Labor Insurance		6,073		5,735		6,371		5,928		10,589		9,519		10,486		8,610		8,289		7,536		8,952		8,657		9,151		8,642
Reconstruction from the Great East Japan Earthquake		2,532		1,868		2,587		1,677		2,498		1,854		1,430		1,112		1,114		894		798		798		633		633
Others		456		158		452		164		338		153		353		273		323		217		327		254		350		265
Total Revenues and Expenditures(b)	¥	381,177	¥	368,936	¥	386,552	¥	374,170	¥	417,561	¥	404,519	¥	455,554	¥	441,081	¥	447,892	¥	432,354	¥	435,226	¥	432,424	¥	440,610	¥	436,036

(a) As of the date of this Annual Report on Form 18-K, details for the provisional results for JFY 2023 Special Accounts are not available. Reflect the revised budget for JFY 2023 approved by the Diet on November 29, 2023.

(b) Without adjustment for inter-account transactions. Total Revenues and Expenditures may differ from the actual totals of the listed accounts due to rounding.

Source: Budget, Ministry of Finance.

34 

Government Affiliated Agencies

	JFY 2018				JFY 2019				JFY 2020				JFY 2021				JFY 2022				JFY 2023 Revised Budget(a)				JFY 2024 Initial Budget
	Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.		Rev.		Exp.
	(in billions of yen)
Total	¥	1,231	¥	1,064	¥	1,265	¥	1,064	¥	1,096	¥	804	¥	996	¥	665	¥	1,269	¥	1,024	¥	2,234	¥	2,646	¥	2,715	¥	3,061

(a) There were no revisions to the relevant information for Government Affiliated Agencies in the first revised budget for JFY 2023 approved by the Diet on November 29, 2023. As of the date of this Annual Report on Form 18-K, details for the provisional results for JFY 2023 Government Affiliated Agencies are not available.

Source: Budget, Ministry of Finance.

35 

Tax Structure

The central government derives tax revenues (including stamp revenues) through taxes on income, consumption and property, etc. The taxes on income, consumption and property (including stamp revenues, etc.) account for 52.8%, 41.4% and 5.8%, respectively, of the total central government taxes and stamp revenues in the JFY 2024 initial national budget.

The individual national income tax is progressive, with rates currently ranging from 5% to 45% of taxable income, and the local taxes are a 10% single rate. Interest income is generally taxed at the rate of 20.315%, including both national and local taxes, separately from other types of income, and subject to certain exemptions. The statutory national corporate income tax rate was reduced from 23.4% in JFY 2016 to 23.2% in JFY 2018, except that, for small and medium corporations, the first ¥8 million of income is taxed at 15%. In addition, corporations are subject to local income taxation. The effective corporate income tax rate (national and local) was reduced from 29.97% in JFY 2016 to 29.74% in JFY 2018.

Comprehensive Reform of Social Security and Tax. Japan’s fiscal conditions face challenges, with its tax revenues covering about 62% of its revenues under the initial budget for JFY 2024, and with the ratio of long-term debt outstanding of central and local governments to gross domestic product having reached 219% at the end of JFY 2022. The ratio of long-term debt outstanding of central and local governments to gross domestic product is expected to be decreased to 215% at the end of JFY 2023 and 214 % at the end of JFY 2024. See also “Japan’s Public Debt” below. The Government of Japan seeks to tackle these fiscal challenges through the “comprehensive reform of social security and tax”, which was approved by the Diet in August 2012, and thereby maintain the market’s and the international community’s confidence in Japan and build the foundation for stable economic growth. In the reform, the government planned to set aside consumption tax revenues for social security payments, and, on the condition that the economic situation improves, gradually increase the consumption tax rate to 8% in April 2014 and to 10% in October 2015. In accordance with the plan, the consumption tax rate was increased to 8% in April 2014. However, the government decided to postpone the implementation date of the further consumption tax hike to 10% from October 1, 2015 to April 1, 2017, as a result of taking comprehensive account of the economic condition and other factors, and on June 1, 2016, the then current Japan Prime Minister, ABE Shinzo announced a plan to further postpone the consumption tax hike to 10% from April 1, 2017, to October 1, 2019. The consumption tax rate has been increased to 10% since October 1, 2019.

Fiscal Investment and Loan Program

The Fiscal Investment and Loan Program (the “FILP”) plan is formulated at the same pace as the General Account budget. The FILP plan details the allocation of public funds to various special accounts, government affiliated agencies, local governments, public corporations and other public institutions.

Under the FILP plan, funds are supplied to government-related entities such as public corporations, government affiliated agencies, special accounts and local governments. The total amount of the initial plan for JFY 2024 is ¥13,338 billion. The sources of funds for the initial plan in JFY 2024 are Fiscal Loan (¥10,287 billion), Industrial Investment (¥475 billion), Government-Guaranteed domestic bonds (¥1,603 billion), Government-Guaranteed foreign bonds (¥933 billion) and Government-Guaranteed long-term borrowings in foreign currencies (¥40 billion). The Fiscal Loan utilizes the Fiscal Loan Fund consisting of funds procured through the issuance of FILP bonds and reserves or surplus funds deposited from government special accounts to provide long-term, fixed and low-interest loans to such entities as special government accounts, local governments, government-affiliated agencies and incorporated administrative agencies.

The following table (the “FILP Classification Table by Purpose”) shows the uses of funds allocated under the initial plan for the periods indicated.

(Note) The FILP Classification Table by Purpose has been prepared and published to specify fields where FILP contributes to the national economy or livelihood. Classification of the table had been almost the same from JFY 1961 to JFY 2014. However, since the classification became to be inappropriate for reflecting realities of recent FILP-target projects, it was revised in JFY 2015 by sorting out the classification or putting some classifications together.

36 

Old classification	JFY 2011		JFY 2012		JFY 2013		JFY 2014
		(in billions)
Housing	¥	578	¥	923	¥	929	¥	942
Living environment		2,725		2,713		2,805		2,306
Social welfare		550		743		703		920
Education		1,176		1,232		1,522		1,278
Small and medium enterprises		3,627		4,323		4,197		3,861
Agriculture, forestry and fisheries		345		373		407		476
National land conservation/disaster recovery		180		645		348		477
Road construction		2,248		2,813		2,939		2,270
Transportation/communications		408		384		519		629
Regional development		467		447		372		259
Industry/technology		625		2,015		2,005		1,448
Trade/economic cooperation		1,978		1,039		1,644		1,313
Total	¥	14,906	¥	17,648	¥	18,390	¥	16,180

New classification	JFY 2014		JFY 2015		JFY 2016		JFY 2017		JFY 2018		JFY 2019
		(in billions)
SMEs and micro enterprises	¥	3,750	¥	3,448	¥	3,182	¥	2,969	¥	2,912	¥	2,997
Agriculture, forestry and fisheries		318		280		322		339		573		604
Education		1,134		1,038		1,055		932		943		930
Welfare/medical care		772		773		811		670		627		541
Environment		50		61		61		64		61		33
Industry/innovation		834		939		864		822		919		1,019
Housing		849		742		621		541		461		546
Social capital		4,467		3,999		3,087		5,093		4,761		3,745
Overseas investment and loans		1,547		1,378		2,000		2,455		2,003		1,857
Others		2,460		1,964		1,477		1,243		1,204		849
Total	¥	16,180	¥	14,622	¥	13,481	¥	15,128	¥	14,463	¥	13,119

New classification	JFY 2020		JFY 2021		JFY 2022		JFY 2023		JFY 2024
		(in billions)
SMEs and micro enterprises	¥	2,903	¥	14,521	¥	3,567	¥	4,972	¥	2,965
Agriculture, forestry and fisheries		590		759		699		796		772
Education		898		4,859		5,671		805		823
Welfare/medical care		477		2,042		1,044		436		442
Environment		54		57		93		101		93
Industry/innovation		1,166		1,213		1,009		1,052		1,134
Housing		521		792		815		768		808
Social capital		3,752		3,065		2,634		2,921		2,743
Overseas investment and loans		2,039		2,029		2,472		3,543		2,993
Others		821		11,568		884		875		563
Total	¥	13,220	¥	40,906	¥	18,886	¥	16,269	¥	13,338

37 

DEBT RECORD

There has been no default in the payment of interest or principal of any internal Japanese government obligation since the establishment of the modern Japanese state in 1868 or of any external Japanese government obligation within a period of 20 years prior hereto.

JAPAN’S PUBLIC DEBT

The following table summarizes, as of the dates indicated, the outstanding direct internal and external funded and floating debt of Japan. The term “floating debt” is used herein to mean all debt with maturities of one year or less from the date of issue. All other debt is classified as “funded debt.” Detailed debt tables are presented below.

Outstanding General Bonds are expected to reach ¥1,105 trillion at the end of JFY 2024. The amount of public bonds issued by the Japanese government as a percentage of its general account total revenues was 34.9% under the revised budget for JFY 2023 (reflecting the first supplementary budget approved on November 29, 2023) and 31.5% under the initial budget for JFY 2024. The amount of General Bond issuances in the JFY 2024 initial budget is ¥35,449 billion and is less than the JFY 2023 revised budget level of ¥44,498 billion.

Summary of Japan’s Public Debt

	Funded				Floating
At the end of JFY	Internal		External		Internal
	(in billions)		(in thousands)		(in billions)
2019		965,926		—		148,614
2020		993,542		—		222,921
2021		1,037,735		—		203,572
2022		1,072,905		—		197,594
2023		1,107,223		—		189,182
					$	5

As of March 31, 2024 Japan had guaranteed payment of principal and interest of various internal yen obligations in the aggregate principal amount of ¥19,915 billion and of various external obligations aggregating the equivalent of ¥8,698 billion.

The following table sets forth the aggregate annual payments of principal in respect of the direct internal funded debt of Japan outstanding as of March 31, 2024 for the periods indicated.

Principal Payments on Direct Funded Debt of Japan

JFY	Internal
	(in billions)
2024	¥	111,814
2025		117,955
2026		83,159
2027		84,058
2028 to 2062		710,195
Total	¥	1,107,182

38 

INTERNAL DEBT

Direct Debt of the Japanese Government

Funded Debt

Title and Interest Rate	Year of Issue		Year of Maturity		Principal Amounts Outstanding as of March 31, 2024 (in millions)
1. Bonds
Interest-Bearing Treasury Bond — 40 years, 16 Series (0.4-2.4%)		2007-2024		2048-2063	¥	45,406,573
Interest-Bearing Treasury Bond — 30 years, 81Series (0.3-2.9%)		1999-2024		2029-2053		177,677,442
Interest-Bearing Treasury Bond — 20 years, 118Series (0.2-2.4%)		2004-2024		2024-2043		305,062,042
Interest-Bearing Treasury Bond — 10 years, 40 Series (0.1-0.8%)		2014-2024		2024-2033		325,247,305
Interest-Bearing Treasury Bond for Individual Investors — 10 years, 120 Series (variable rate)		2014-2024		2024-2034		10,785,094
Inflation-Indexed Bonds —10 years, 10 Series (0.005-0.2%)		2014-2024		2024-2033		12,321,931
Japan Climate Transition Bond— 10 years,1 Series (0.7%)		2024		2033		799,500
Interest-Bearing Treasury Bond — 5 years, 27 Series (0.005-0.4%)		2019-2024		2024-2028		144,683,347
Interest-Bearing Treasury Bond for Individual Investors — 5 years, 60 Series (0.05-0.42%)		2019-2024		2024-2029		1,403,087
Japan Climate Transition Bond— 5 years,1 Series (0.3%)		2024		2028		799,800
Interest-Bearing Treasury Bond for Individual Investors — 3 years, 36 Series (0.05-0.19%)		2021-2024		2024-2027		1,124,167
Interest-Bearing Treasury Bond — 2 years, 24 Series (0.005-0.2%)		2022-2024		2024-2026		72,241,612
6% Bereaved Family Treasury Bond, 8 Series		2015-2022		2024-2031		1
6% Repatriation Treasury Bond, 1 Series		2014		2024		0
Non-interest Special Benefit Treasury Bond IV, 1 Series		2016		2026		1
Non-interest Special Benefit Treasury Bond X, 1 Series		2016		2026		3
Non-interest Special Benefit Treasury Bond XIII, 1 Series		2021		2026		25
Non-interest Special Benefit Treasury Bond XVII, 1 Series		2016		2026		36
Non-interest Special Benefit Treasury Bond XXII, 4 Series(a)		2014-2017		2024-2027		165

39 

Title and Interest Rate	Year of Issue		Year of Maturity		Principal Amounts Outstanding as of March 31, 2024 (in millions)
Non-interest Special Benefit Treasury Bond XXVII, 7 Series(a)		2014-2022		2024-2032		941
Non-interest Special Benefit Treasury Bond XXIX, 1 Series		2021		2026		107
Non-interest Treasury Bond for Special Condolence XI, 1 Series		2020		2025		76,021
Non-interest Special Benefit Treasury Bond XXX, 1 Series(a)		2023		2028		2,606
Total Bonds					¥	1,097,631,805
2. Borrowings
Former Temporary Military Expenditure(b)		1943-1945			¥	41,422
Allotment of Local Allocation and Local Transfer Tax		2007		2037		7,590,459
Former National Centers for Advanced and Specialized Medical Care		2010		2025-2035		11,949
Special Account for Energy Policy (0.01-0.9 %)		2011-2024		2024-2038		80,546
Special Account for Stable Food Supply (0.01-0.9%)		2012-2024		2025-2037		23,964
Special Account for National Forest Debt Management (0.0-0.299%)		1996-2024		2024-2033		1,088,240
Special Account for Motor Vehicle Safety (0.0-0.8%)		2004-2024		2024-2041		754,820
Total Borrowings					¥	9,591,399
Total Direct Internal Funded Debt					¥	1,107,223,204

(a) The amounts outstanding for Non-interest Special Benefit Treasury Bond XXII, 4 Series and for Non-interest Special Benefit Treasury Bond XXVII, 7 Series are higher than the amounts outstanding for the other Non-interest Special Benefit Treasury Bond series listed in this table because these bonds relate to “special benefit for the wives of the war dead, etc.”, for which benefit payments are high compared to other special benefits.

(b) Represents borrowings by the government from special corporations of currencies of areas under Japanese control during World War II. The maturity of such borrowings and other matters relating to such borrowings remain undetermined.

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Floating Debt

Title	Interest	Year of Maturity	Principal Amounts Outstanding as of March 31, 2024 (in millions)
1. Bonds
Treasury Discount Bills
Food Financing Bills	Non-interest bearing	2024		173,000
Foreign Exchange Fund Financing Bills	Non-interest bearing	2024		90,165,920
Petroleum Financing Bills	Non-interest bearing	2024		1,160,400
Treasury Bills, 19 Series	Non-interest bearing	2024-2025		50,699,590
Note in Substitution for Currency of the International Monetary Fund	Non-interest bearing	Payable on demand		4,085,050
Note in Substitution for Currency of the International Development Association	Non-interest bearing	Payable on demand		17,944
Note for Contribution to the Special Funds of the Asian Development Bank	Non-interest bearing	Payable on demand		16,863
Note in Substitution for Currency of the African Development Fund	Non-interest bearing	Payable on demand		63,952
Note in Substitution for Currency of the International Fund for Agricultural Development	Non-interest bearing	Payable on demand		3,042
Note in Substitution for Currency of the Global Environment Facility Trust Fund of the International Bank for Reconstruction and Development	Non-interest bearing	Payable on demand		42,444
Note in Substitution for Currency of the Multilateral Investment Guarantee Agency	Non-interest bearing	Payable on demand		721
Note in Substitution for Currency of the Green Climate Fund	Non-interest bearing	Payable on demand		63,200
Government Bonds issued to Development Bank of Japan	Non-interest bearing	Payable on demand		1,324,665
Government Bonds issued to Nuclear Damage Liability Facilitation Fund	Non-interest bearing	Payable on demand		2,395,400
			(in USD millions)
Demand Note for Contributions to the Advancing Needed Credit Enhancement for Ukraine Trust Fund	Non-interest bearing	Payable on demand	$	5,000
Total Bonds			¥	150,212,190
			$	5,000
2. Borrowings
Special Account for Local Allocation Tax	0.000-0.4%	2024	¥	28,612,295
Special Account of Pension	0.4%	2024		1,434,835
Special Account for Energy Policy	0.000-0.155%	2024-2025		8,557,634
Total Borrowings			¥	38,604,764
Total Direct Internal Floating Debt			¥	189,182,063
			$	5,000
Total Direct Internal Debt			¥	1,296,405,267
			$	5,000

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Debt Guaranteed by the Japanese Government

Title	Interest		Year of Issue		Year of Maturity		Principal Amounts Outstanding as of March 31, 2024 (in millions)
1. Bonds Issued by Government-Affiliated Corporations
Japan Finance Corporation		0.001-0.544%		2014-2021		2024-2031	¥	435,000
Japan Expressway Holding and Debt Repayment Agency		0.001-2.700%		2006-2024		2024-2061		11,232,500
Japan Housing Finance Agency		0.001-1.628%		2021-2024		2026-2044		690,000
New Kansai International Airport Co., Ltd.		0.105-2.400%		2007-2019		2024-2029		160,100
Development Bank of Japan		0.001-1.245%		2014-2024		2024-2062		985,000
Deposit Insurance Corporation of Japan		0.001-0.100%		2020-2023		2024-2025		650,000
Nuclear Damage Compensation and Decommissioning Facilitation Corporation		0.001-0.225%		2021-2023		2024-2026		800,000
Private Finance Initiative Promotion Corporation of Japan		0.001-0.145%		2017-2021		2026-2027		88,000
Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development		0.695%		2023		2033		5,000
Fund Corporation for the Overseas Development of Japan’s ICT and Postal Services Inc.		0.110-0.504%		2021-2022		2031-2032		20,000
Organization for Promoting Urban Development		0.020-1.517%		2016-2023		2026-2043		120,800
Central Japan International Airport Co., Ltd.		0.001-0.787%		2015-2024		2025-2042		151,800
Japan Finance Organization for Municipalities		0.001-0.669%		2014-2021		2024-2030		2,475,000
Total							¥	17,813,200
2. Borrowings of Government-Affiliated Corporations
Incorporated Administrative Agency — Farmers Pension Fund		0-0.069%		2023-2024		2024-2025	¥	159,400
Japan Organization for Metals and Energy Security		0-0.050%		2023-2024		2024-2025		934,133
Deposit Insurance Corporation of Japan		0-0.131%		2023-2024		2024-2025		74,000
Japan Investment Corporation		0.001%		2023		2024		600,000
Nuclear Damage Compensation and Decommissioning Facilitation Corporation		0%		2023		2024		200,000
The Corporation for Revitalizing Earthquake-Affected Business		0%		2023		2024		9,800
Organization for Cross-regional Coordination of Transmission Operators,Japan		0.220%		2024		2025		120,000
Organization for Promoting Urban Development		0%		2021		2025		4,900
Total							¥	2,102,233
Total Internal Debt Guaranteed by the Japanese Government							¥	19,915,433

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EXTERNAL DEBT

Debt Guaranteed by the Japanese Government

	Interest		Year of Loan		Year of   Maturity		Principal Amounts Outstanding as of March 31, 2024 (in thousands)
Japan Bank for International Cooperation		0.500-4.875%		2014-2024		2024-2031	$	41,300,000
		0.375%		2021		2026	£	250,000
		1.500-3.125%		2022-2023		2028-2029	€	2,000,000
Japan International Cooperation Agency		1.000-4.000%		2016-2023		2026-2031	$	4,730,000
Development Bank of Japan		0.500-4.500%		2014-2024		2024-2034	$	12,650,000
		3.125-4.750%		2007-2023		2027-2028	€	1,700,000
		1.810-2.300%		1998-2006		2026-2028	¥	100,000,000
Totals by currency							$	60,430,000
							£	250,000
							€	2,700,000
							¥	100,000,000

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SUBSCRIPTIONS TO INTERNATIONAL FINANCIAL ORGANIZATIONS

The following table sets forth information relating to Japan’s obligations to contribute to the capital and financing requirements of international financing organizations in which it participates as of March 31, 2024.

Organization	Subscription Amount
	(in USD millions)
International Monetary Fund	$	40,964	(a)
International Bank for Reconstruction and Development	$	24,113	(b)
International Development Association	$	51,927	(c)
International Finance Corporation	$	1,800	(d)
Multilateral Investment Guarantee Agency	$	97	(e)
Asian Development Bank	$	22,227	(f)
Inter-American Development Bank	$	8,878	(g)
Multilateral Investment Fund	$	655	(h)
Inter-American Investment Corporation	$	94	(i)
African Development Bank	$	10,588	(j)
African Development Fund	$	4,901	(k)
European Bank for Reconstruction and Development	€	2,557	(l)
International Fund for Agricultural Development	$	642	(m)

(a) Equivalent of SDR 30,820.5 million and 1SDR=1.329130 USD as of July 17, 2024.

(b) As stated in IBRD Financial Statements as of June 30, 2023.

(c) As stated in IDA Financial Statements as of June 30, 2023.

(d) As stated in IFC Financial Statements as of June 30, 2023.

(e) As stated in MIGA Financial Statements as of June 30, 2023.

(f) As stated in ADB Financial Statements as of December 31, 2023.

(g) As stated in IDB Financial Statements as of December 31, 2023.

(h) As stated in MIF Financial Statements as of December 31, 2023.

(i) As stated in IIC Financial Statements as of December 31, 2023.

(j) As stated in AfDB Financial Statements as of December 31, 2023. Equivalent of UA 7,892 million.

(k) As stated in AfDF Financial Statements as of December 31, 2023. Equivalent of UA 3,653 million.

(l) As stated in EBRD Financial Statements as of December 31, 2023.

(m) As stated in IFAD Financial Statements as of December 31, 2023.

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