Japan’s “growth potential is immense”, according to a 2022 report by global consultancy McKinsey, highlighting the country’s role as a “global innovator”. McKinsey noted strengths including the country’s robust national balance sheet, and contributions from industries including automotive, chemicals, computers and electronics, and machinery. As the company has noted, the government is committed to supporting startups and SMEs as part of a broader programme of invigorating economic growth.
McKinsey attributes Japan’s “important position on the world economic stage…in large part to its strong manufacturing and machinery sectors”. Manufacturing accounted for around 20% of GDP before