The International Trade Council (ITC) acknowledges the latest findings by Nikkei that Japanese companies are on track to set a new record in capital investment, reaching 31.6 trillion yen ($223 billion) in the 2023 fiscal year. This represents an increase of 16.9% from the previous fiscal year across all industries.
Based on the survey encompassing 857 businesses - both listed and unlisted entities possessing equity capital of at least 100 million yen - domestic investment, accounting for approximately two-thirds of the total, is expected to see double-digit percentage growth for the second year running. Overseas investment is also predicted to rise by 22.6%, marking a third consecutive year of double-digit expansion.
Regionally, capital investment in the U.S. is set to surge by 30.7% to over 1 trillion yen, largely driven by the favourable conditions established by the Inflation Reduction Act. Meanwhile, European Union investments are predicted to rise by 36.8%. However, investment in China is expected to decrease by 7.5%.
With the semiconductor shortage easing and global demand for electric vehicles on the rise, these sectors, including battery materials and software, are experiencing a notable boost in investment. Digital sectors are also garnering interest as companies endeavour to enhance productivity through artificial intelligence and other technologies amidst labour shortages.
Excluding paper/pulp, real estate, and construction, all industries are set to witness an increase in capital investment. The electronic equipment industry is forecast to lead this surge with a 17.3% rise to 5 trillion yen, followed closely by the automobile industry, which is projected to jump by 16.6% to 4.3 trillion yen.
The ITC continues to monitor global trends in investment and trade, and applauds the strategic efforts of Japanese companies in navigating the current economic landscape. The Council is dedicated to supporting all stakeholders in the promotion of sustainable trade practices and international economic growth.
For more information, please visit the ITC website.
About the International Trade Council The International Trade Council is a non-partisan, global peak-body chamber of commerce, providing resources, networking opportunities, and advocacy across 176 countries worldwide. It works to promote trade and investment growth, ethical business practices, and intellectual property rights protection.