"Digital Deficit": IT Giants Influencing Japan's Economy

TOKYO, May 11 (News On Japan) - Payments for digital services provided by overseas IT giants have emerged as a new factor contributing to the yen's decline, reports economic journalist Ideguchi.

The hidden cause of the yen's persistent weakness, beyond what can be addressed by currency intervention or changes in monetary policy, is the "digital deficit."

The digital deficit refers to the shortfall incurred by Japanese companies and individuals from using digital services provided by international IT giants like GAFA (Google, Apple, Facebook, Amazon). This deficit has continued to grow, reaching 5.4 trillion yen last fiscal year.

While Japan has been advancing in digitalization, the majority of the services used originate from companies like GAFA, leading to a significant outflow of Japanese money overseas.

Moreover, this digital deficit could further accelerate the depreciation of the yen. This is because paying these overseas companies involves selling yen to purchase dollars.

Last week, the yen hit a 34-year low at 160 yen to the dollar. As long as Japan remains dependent on foreign digital services, it appears locked in a structure from which it cannot escape.

Developing Japanese digital services that can compete with GAFA is a significant challenge in preventing the outflow of funds.

Source: TBS

Japan's Agriculture Ministry Urges Nationwide Action to Combat Avian Flu

The Ministry of Agriculture, Forestry, and Fisheries held an emergency meeting to address the rapid outbreak of avian influenza, urging prefectural governments to strengthen hygiene management measures.

Japan Grapples with Poverty and Rising 'Invisible Homeless'

Japan is facing a deepening crisis of poverty and inequality, with rising reports of 'invisible homeless' individuals and growing economic hardships among the population. Discussions over reforms to the country's tax and welfare systems have taken center stage, as policymakers grapple with how to provide meaningful support.

Ueno Toshogu Shrine Shines in Gold with Special Lighting

A special lighting ceremony was held on November 20th at Ueno Toshogu Shrine, located in Ueno Park, Taito Ward, Tokyo. The event featured a unique lighting design created by renowned lighting designer Motoko Ishii.

World's First Fiber Made From Bagworm Silk Revolutionizes Industry

A Japanese pharmaceutical company has announced the successful commercialization of fiber made from silk produced by bagworms.

Japan's Year-End Jumbo Lottery Kicks Off Nationwide

Sales for the Year-End Jumbo Lottery, which offers a combined prize of 1 billion yen for the first prize and adjacent prizes, have officially begun.

MEDIA CHANNELS

MORE Business NEWS

Japan Allocates Budget for Securing Copper Mine Interests

The Japanese government plans to incorporate securing copper mine interests into its upcoming economic measures, according to a report by TV Tokyo. Copper, an essential material for electric vehicles (EVs), semiconductors, and data centers, faces increasing global demand, raising concerns over supply shortages.

Beaujolais Nouveau hits shelves without price hike

This year's bottles of Beaujolais Nouveau have hit store shelves across Japan. And in some more good news for wine drinkers, many retailers and importers have kept prices unchanged despite the weak yen. (NHK)

Japanese chipmaker Kioxia to debut on TSE in mid-December

Japanese semiconductor maker Kioxia Holdings is expected to be listed on the Tokyo Stock Exchange next month after years of postponement. (NHK)

New Osaka Marubiru to Open in 2030

The iconic Osaka Marubiru in Umeda, closed last year due to aging, will be replaced with a new 192-meter skyscraper, the tallest in the Osaka Station area.

Tokyo Condo Prices Surge as Demand for Luxury Units Grows

The average price for a newly built condominium in Tokyo’s 23 wards has remained above 100 million yen for six consecutive months.

Rice Trade Prices Reach Record High for Second Consecutive Month

The average transaction price of newly harvested rice between agricultural cooperatives and wholesalers reached a record high for the second consecutive month in October. The price of unpolished rice was 23,820 yen per 60 kilograms.

NVIDIA Invests in Japan's 'Sakana AI'

NVIDIA has thrown its weight behind Sakana AI, a Tokyo-based startup rapidly gaining traction in the booming generative AI field. Since ChatGPT's debut in November 2022, industry giants like Google and Meta have entered the fray, intensifying the competitive landscape.

Ueda: BOJ rate decisions depend on prices, economic trends

Bank of Japan Governor Ueda Kazuo says the BOJ makes decisions on interest rates by carefully assessing all risk factors at each monetary policy meeting. (NHK)

< 2 3 4 5 >