Economy
GDP (2006 est.): $4.883 trillion (official exchange rate); $3.902 trillion (PPP).
Real growth rate (2006): 2.2%.
Per capita GDP (2006 est. PPP): $34,155.
Natural resources: Fish and few mineral resources.
Agriculture: Products--rice, vegetables, fruit, milk, meat, silk.
Industry: Types--machinery and equipment, metals and metal products, textiles, autos, chemicals, electrical and electronic equipment.

GEOGRAPHY
Japan, a country of islands, extends along the eastern or Pacific coast of Asia. The four main islands, running from north to south, are Hokkaido, Honshu (or the mainland), Shikoku, and Kyushu. Okinawa Island is about 380 miles southwest of Kyushu. About 3,000 smaller islands are included in the archipelago. In total land area, Japan is slightly smaller than California. About 73% of the country is mountainous, with a chain running through each of the main islands. Japan's highest mountain is the world famous Mt. Fuji (12,385 feet). Since so little flat area exists, many hills and mountainsides are cultivated all the way to the summits. As Japan is situated in a volcanic zone along the Pacific depth, frequent low intensity earth tremors and occasional volcanic activity are felt throughout the islands. Destructive earthquakes occur several times a century. Hot springs are numerous and have been developed as resorts.

Temperature extremes are less pronounced than in the United States, but the climate varies considerably. Sapporo, on the northernmost main island, has warm summers and long, cold winters with heavy snowfall. Tokyo, Nagoya, Kyoto, Osaka, and Kobe, in central and western parts of the largest island of Honshu, experience relatively mild winters with little or no snowfall and hot, humid summers. Fukuoka, on the island of Kyushu, has a climate similar to that of Washington, DC, with mild winters and short summers. Okinawa is subtropical.

JAPAN ECONOMY
Japan's industrialized, free market economy is the second-largest in the world. Its economy is highly efficient and competitive in areas linked to international trade, but productivity is far lower in protected areas such as agriculture, distribution, and services. After achieving one of the highest economic growth rates in the world from the 1960s through the 1980s, the Japanese economy slowed dramatically in the early 1990s, when the "bubble economy" collapsed, marked by plummeting stock and real estate prices.

Japan's reservoir of industrial leadership and technicians, well-educated and industrious work force, high savings and investment rates, and intensive promotion of industrial development and foreign trade produced a mature industrial economy. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy.

Japan's long-term economic prospects are considered good, and it has largely recovered from its worst period of economic stagnation since World War II. Real GDP in Japan grew at an average of roughly 1% yearly in the 1990s, compared to growth in the 1980s of about 4% per year. The Japanese economy is now in its longest postwar expansion after more than a decade of stagnation. Real growth in 2005 was 2.7% and was 2.2% in 2006.

Agriculture, Energy, and Minerals
Only 15% of Japan's land is arable. The agricultural economy is highly subsidized and protected. With per hectare crop yields among the highest in the world, Japan maintains an overall agricultural self-sufficiency rate of about 40% on fewer than 5.6 million cultivated hectares (14 million acres). Japan normally produces a slight surplus of rice but imports large quantities of wheat, corn, sorghum, and soybeans, primarily from the United States. Japan is the largest market for U.S. agricultural exports.

Given its heavy dependence on imported energy, Japan has aimed to diversify its sources. Since the oil shocks of the 1970s, Japan has reduced dependence on petroleum as a source of energy from more than 75% in 1973 to about 57% at present. Other important energy sources are coal, liquefied natural gas, nuclear power, and hydropower.

Deposits of gold, magnesium, and silver meet current industrial demands, but Japan is dependent on foreign sources for many of the minerals essential to modern industry. Iron ore, coke, copper, and bauxite must be imported, as must many forest products.

Labor
Japan's labor force consists of some 67 million workers, 40% of whom are women. Labor union membership is about 12 million.