Japan in the World
Economic Growth Supported by Digital
Transformation
Decomposition of the potential growth of the Japanese
economy
Year-on year (contribution), %
6.0
5.0
4.0
3.0
2.0
Hours worked
Capital stock
■Total factor productivity (TFP)
Number of employed persons
-Potential growth rate
NOMURA
One key to resolving potential structural
economic and social issues leading up to the
Post-Corona age is digital transformation (DX)
Investment in digitalization should not be
perceived merely as a means to streamline work
tasks and reduce required labor, rather, using
digitalization to both mitigate labor shortages
through streamlining of work and achieve higher
added value could ultimately boost Japan's
overall productivity while raising employee
income levels, and heighten the country's
capability for growth
1.0
0.0
-1.0
-2.0
83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 CY
Source: Bank of Japan materials
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