In times of geopolitical tensions, Japan is becoming more attractive to German companies due to its political, economic and social stability. This is one result from the business climate survey that we conducted for the sixth time together with the Chamber of Industry and Commerce in Japan. For the first time, the generated profits in Japan are above the level of 2019 and companies are optimistic about the next two years.
The sales potential in Japan continues to be the most important reason for companies to be active there. However, new is that more purchases are being made in Japan: For every second German company, direct access to innovative suppliers is crucial. In addition, there is more cooperation in third party markets (+8 percentage points compared to 66 percent in the previous year). Meanwhile, the greatest challenge is to recruit skilled workers due to the aging society. The inflation problem has also become much more relevant: the inflation rate in Japan recently rose to four percent - the highest level in four decades.
All relevant figures and data as well as forecasts on business development and the economic opportunities for German companies in Japan are available for you in the report on the business climate survey: "Economic Outlook: German Business in Japan 2023".
