Country Overview
Japan is one of the most improved countries in procurement processes. It has transparent procurement procedures, which increases fairness and competitiveness for infrastructure investment. Japan provides significant protection for investors, with a highly liquid capital market and the ability to secure cheap lending to invest in infrastructure.
See Full Overview Data
GDP per capita
40,847 USD
Population
126.2 million persons
Infrastructure quality
93.2 (0-100 best)
Infrastructure investment
3.0% of GDP
Private infrastructure investment
3,856 5-year average, USD millions
Infrastructure gap
0.1% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

8
4
80.0
Global Leader
13
-
74.3
Global Leader
18
4
82.2
Top performer
52
4
63.2
Aspiring
13
42
92.0
Global Leader
71
3
13.0
Emerging
19
1
59.2
Top performer
2
-
84.4
Global Leader

Metric Overview

Strengths

Transparency in public procurement

Japan's public procurement notices are made available online and tender documents transparently detail procurement procedures. The transparency of the process encourages more participation and competition, which drive value for money.

Stocks traded

At 127% of GDP, Japan’s value of stocks traded is the third highest of all InfraCompass 2020 countries. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Recovery rate

According to the World Bank, Japan has the highest recovery rate of all InfraCompass 2020 countries, at 91.8 cents on the dollar in 2019.

Transparency in public procurement

Japan's public procurement notices are made available online and tender documents transparently detail procurement procedures. The transparency of the process encourages more participation and competition, which drive value for money.

Stocks traded

At 127% of GDP, Japan’s value of stocks traded is the third highest of all InfraCompass 2020 countries. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Recovery rate

According to the World Bank, Japan has the highest recovery rate of all InfraCompass 2020 countries, at 91.8 cents on the dollar in 2019.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

High income country average

Financial markets:
Stocks traded

Governance:
Recovery rate

Opportunities to Grow

Published project pipeline

Japan does not currently have an infrastructure pipeline of projects. The addition of an infrastructure pipeline could help provide infrastructure participants with a clear indication of prospective and confirmed infrastructure activity.

Gross government debt

Japan's gross government debt rose to 238% of GDP in 2019, the highest of all InfraCompass 2020 countries. Given the impact of the COVID-19 pandemic, if Japan's debt or cost of servicing its existing debt were to rise, it may hinder the Japanese government's ability to fund infrastructure.

Value of close infrastructure deals with foreign equity sponsorship

Among the High Income Countries, Japan has the lowest value of closed infrastructure deals with foreign equity sponsorship, at only 0.003%. Increasing foreign investment may reduce financing costs as a result of greater competition.

Published project pipeline

Japan does not currently have an infrastructure pipeline of projects. The addition of an infrastructure pipeline could help provide infrastructure participants with a clear indication of prospective and confirmed infrastructure activity.

Gross government debt

Japan's gross government debt rose to 238% of GDP in 2019, the highest of all InfraCompass 2020 countries. Given the impact of the COVID-19 pandemic, if Japan's debt or cost of servicing its existing debt were to rise, it may hinder the Japanese government's ability to fund infrastructure.

Value of close infrastructure deals with foreign equity sponsorship

Among the High Income Countries, Japan has the lowest value of closed infrastructure deals with foreign equity sponsorship, at only 0.003%. Increasing foreign investment may reduce financing costs as a result of greater competition.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

High income country average

Funding capacity:
Gross government debt

Detailed Data

This section shows country data for each of the 41 metrics. Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Japan

High Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

91.8
68.3

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

80.7 (+2.3)
74.3

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

36.7
48.1

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

67.7 (+1.3)
61.9

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Japan

High Income Countries Average

91.8
68.3
80.7 (+2.3)
74.3
Yes
-
36.7
48.1
67.7 (+1.3)
61.9
Yes
-

Country Overview Data

Japan is one of the most improved countries in procurement processes. It has transparent procurement procedures, which increases fairness and competitiveness for infrastructure investment. Japan provides significant protection for investors, with a highly liquid capital market and the ability to secure cheap lending to invest in infrastructure.
GDP per capita

40,847 USD

Population

126.2 million persons

Infrastructure quality

93.2 (0-100 best)

Infrastructure investment

3.0% of GDP

Private infrastructure investment

3,856 5-year average, USD millions

Infrastructure gap

0.1% of GDP

GDP

5,155 USD billion

GDP growth rate

0.9%

GDP per capita growth rate

3.9%

Gini coefficient

32.1 (0-100 worst)

Gross Government Debt

238.0% of GDP

Inflation rate

1.0%

Summary credit rating

77.0 (0-100 best)

Unemployment rate

2.4%

Urbanisation ratio

92.0% of total population

Road connectivity

77.8 (0-100 best)

Quality of road infrastructure

6.1 (1-7 best)

Efficiency of train services

6.8 (1-7 best)

Efficiency of air transport services

6.2 (1-7 best)

Efficiency of seaport services

5.8 (1-7 best)

Electricity access

100.0% of population

Electricity supply quality

4.3% of output lost

Exposure to unsafe drinking water

1.9% of population

Reliability of water supply

6.7 (1-7 best)

Digital Adoption Index

0.8 (0-1 best)

Mobile-broadband subscriptions

188.9 per 100 population

Fixed-broadband Internet subscriptions

32.2 per 100 population