Japan has come to earn more from abroad thanks to active overseas direct and portfolio investments by Japanese businesses.
Income from dividends, interest and other foreign sources topped 50 trillion yen ($378 billion) on an annualized basis in the July-September period, up 2.8 times over the past decade and close to 10% of the nation's gross domestic product.
The steady growth is attributable to a series of corporate acquisitions made by Japanese businesses over the past decade or so. However, not all earnings flow back to Japan. If the money stays at overseas subsidiaries, it will not help boost the Japanese economy.
Investment powerhouse Japan earns 10% of GDP from overseas income Primary income surplus tops world ranking again in 2021 YOHEI MATSUO, Nikkei staff writer December 24, 2022 12:16 JST TOKYO -- Japan has come to earn more from abroad thanks to active overseas direct and portfolio investments by Japanese businesses.
A new stimulus for the Japanese economy is on the way: the general public can now purchase Japanese pension funds. The privatisation of Japan’s stock market is a great step that more investors should take advantage of, especially considering Japanese stock funds are among the best in the world.
It’s a good opportunity to visit Japan and meet up with local Fintech communities, or to finally host an event. Thanks to continuing reforms in the investment climate and robust government backing, the economy is progressing and drawing private sector investments.
Japan’s economy is seeing an increase in investment as a result of its improved economy and the decoupling of the yen from the stock market. As it deals with inflation-related concerns, Japan has begun to re-establish itself as a hub of financial and business development.
CEIC calculates Investment as % of Nominal GDP from quarterly Nominal Gross Capital Formation and quarterly Nominal GDP. Economic and Social Research Institute provides Nominal Gross Capital Formation in local currency and Nominal GDP in local currency, based on SNA 2008 with benchmark year 2015. Investment as % of Nominal GDP prior to Q1 1994 is based on SNA 1993 with benchmark year 2000.