Slow Rise of Sharing Economy in Japan, Despite Steady Growth
The sharing economy is gaining a great deal of focus globally and is seen to be one of the fastest growing business sectors in most developed economies. However, in Japan, despite continued and steady growth in recent years, it is still in its infancy when compared to other major economies of the world.
The research showed, that Japan's sharing economy (using technology to allow consumers and businesses to directly trade goods and services) made up less than a 10th of a percent of nominal gross domestic product in 2016.
Japan's sharing economy was around 255 billion yen ($2.3 billion) in 2016, the research showed. Of this figure, some 120 billion yen was reflected in the country's GDP calculations, but around 135 billion yen was not captured in GDP. In comparison, nominal GDP stood at 538 trillion yen in 2016.
Japanese regulators have so far taken a cautious approach to companies that typify the sharing economy, so there are doubts about how much this sector can grow in Japan. The government will consider changes to existing data and calculation methods to reflect more of the sharing economy in GDP, but it may take time to reach a conclusion.