The recovery is relatively sluggish
Fiscal policy reacted robustly
Digital government use is limited
Employment and investment had been picking up
Infections and deaths are relatively low, but difficult to bring under control
While beds appeared ample, the health service struggled with infections
Vaccination started slowly in 2021, but has accelerated
Private consumption has been subdued and public spending has expanded
Employment dropped rapidly while unemployment rose more gradually
External demand and capital goods shipments bounced back
The Bank of Japan boosted its balance sheet
Inflation temporarily turned negative
Lending surged as cash flow dried up, backed by loan guarantees
The banking sector appears relatively sound
Some asset prices have surged
Large-scale fiscal support has been provided
Long-term economic and fiscal projections
Composition of government spending and revenue
The evolution of public debt is sensitive to interest rate assumptions
Emissions remain elevated due to shifts in energy supply
Low energy intensity and increasing renewables have helped decoupling
Greenhouse gas emission targets are challenging
Market-based instruments are relatively underused
Suicide rates rose as the pandemic wore on
Labour market reforms have helped boost participation and employment rates
More women are participating but large wage gaps persist
The number of foreign workers has increased
The number of bankruptcies has fallen
Business dynamism has remained weak
Regulation is relatively complex and the state is involved in business operations
Levels of perceived corruption are relatively low
Access to mobile broadband is widespread
Most connections are high-speed broadband
Online purchasing is around the OECD average
Japan is an important developer of emerging digital technologies
Some digital technologies are widely used
Government policy settings for data provision appear relatively good
Internet use for public services is limited in Japan
Japan has made progress in using electronic health records
Labour productivity is relatively weak
Digital-related service exports are largely intellectual property products
The contribution of services to manufacturing exports is low
Growth of the private capital stock has slowed
Business R&D spending is high, but not in the ICT sector
Public support of R&D spending is largely tax based
Firm entry rates are particularly weak
The venture capital market is relatively small
Entrepreneurship in Japan is quite low
The share of university graduates is high, but digital skills are around average
Computers are comparatively less available in schools
ICT access is quite dependent on school type and location
Students in Japan spend less time on the Internet and using computers
Schools are not well prepared for the use of ICT tools
There are few STEM graduates
Firm-based training is comparatively underdeveloped
Job-to-job flows have trended up modestly
Firm spending on training is more generous in larger firms
Non-regular employment has trended up through the late 2010s