y (PPP) basis. One
notable characteristic of the economy is how manufacturers,
suppliers, and distributors work together in closely-knit groups
called keiretsu. A second basic feature has been the guarantee of
lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. The tiny
agricultural sector is highly subsidized and protected, with crop
yields among the highest in the world. Usually self sufficient in
rice, Japan must import about 60% of its food on a caloric basis.
Japan maintains one of the world's largest fishing fleets and
accounts for nearly 15% of the global catch. For three decades,
overall real economic growth had been spectacular - a 10% average in
the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s.
Growth slowed markedly in the 1990s, averaging just 1.7%, largely
because of the after effects of overinvestment during the late 1980s
and contractionary domestic policies intended to wring speculative
excesses from the stock and real estate markets and to force a
restructuring of the economy. From 2000 to 2003, government efforts
to revive economic growth met with little success and were further
hampered by the slowing of the US, European, and Asian economies. In
2004-06, growth improved and the lingering fears of deflation in
prices and economic activity lessened. Japan's huge government debt,
which totals 175% of GDP, and the aging of the population are two
major long-run problems. Some fear that a rise in taxes could
endanger the current economic recovery. Internal conflict over the
proper way to reform the financial system will continue as Japan
Post's banking, insurance, and delivery services undergo
privatization between 2007 and 2017.

GDP (purchasing power parity):
$4.22 trillion (2006 est.)

GDP (official exchange rate):
$4.911 trillion (2006 est.)

GDP - real growth rate:
2.8% (2006 est.)

GDP - per capita (PPP):
$33,100 (2006 est.)

GDP - composition by sector:
agriculture: 1.6%
industry: 25.3%
services: 73.1% (2006 est.)

Labor force:
66.44 million (2006 est.)

Labor force - by occupation:
agriculture: 4.6%
industry: 27.8%
services: 67.7% (2004)

Unemployment rate:
4.1% (2006 est.)

Population below poverty line:
NA%

Household income or consumption by