In recent years, some concerning news about Japan has been reported. For example, in 2022, the Japanese yen depreciated dramatically from 115 to nearly 150 JPY per USD. In 2023, Japan’s GDP per capita dropped to the lowest among G7 countries, whereas it was once among the highest.
So, is Japan still a developed country in 2024? The simple answer is YES—regardless of the standards set by any international organization.
You might wonder why this question even arises. Isn’t Japan widely recognized as a developed country? Well, there are indeed many people who have started to question this, especially those living in Japan.
1. Why do some people think Japan is no longer a developed country?
Before answering this question directly, let’s consider another question: Can a developed country revert to developing country status? Yes, a famous example is Argentina. In the early 20th century, it was considered an advanced country (though the concept of “developed country” did not exist at the time), but now it is classified as an upper-middle-income country by the World Bank.
Now, returning to the main question: Why do some people doubt Japan’s status as a developed country? There are several reasons for this sentiment:
First, Japan’s GDP per capita dropped significantly from $40,058 USD in 2021 to approximately $33,834 USD in 2023. For many Japanese people, two symbolic events were particularly shocking: South Korea’s GDP per capita nearly surpassing Japan’s and the UK surpassing Japan in total GDP.
Second, tourists visiting Japan in recent years have been surprised to find that prices are much lower and more affordable than they anticipated. A book titled Cheap Japan, published by a Japanese reporter in 2021, has been selling increasingly well, reflecting Japanese people themselves also be aware of this trend.
Third, Japan’s wages are becoming less competitive compared to other developed countries. According to World Population Review, Japan’s minimum hourly wage is $8.14 USD, which is close to those of countries like Slovenia ($8.21 USD) and Andorra ($8 USD).
2. Why is Japan still considered a developed country?
The definition of a developed country can vary depending on the criteria of different organizations. However, the World Bank, IMF, and HDI still classify Japan as a developed country, and Japan remains far from being removed from their lists.
For example, according to the World Bank, a high-income country has a GDP per capita of more than $14,005 USD, while Japan’s GDP per capita in 2023 was around $33,834 USD. As for the IMF, its classification system may be complex, but as of the time of writing this article, Japan is still listed as an advanced country. Both “high-income” and “advanced country” statuses are important references in determining developed country status.
Economic performance is not the only factor in being classified as a developed country. For instance, Saudi Arabia, with a GDP per capita of $32,881 USD (34th globally), has not yet been widely recognized as a developed country.
“Developed” also encompasses other factors. HDI (Human Development Index) considers two indicators besides economic performance: life expectancy and education. In 2023, Japan’s life expectancy was 84.5 years, 4.2 years above the OECD average, and one of the highest in the world. In terms of education, Japan is one of the most literate countries globally and has many world-class universities.
Japan also has many other advantages. For example, it is cleaner and safer than most other developed countries, let alone developing nations. Its transport infrastructure is highly developed, with 27,311 kilometers of railway, ranking 11th globally even though Japan is only 62nd in land area.
Japan leads in various advanced technologies, such as robotics, the automobile industry, autonomous driving, semiconductors, biotechnology, and medical technology. Japan is also one of the most culturally influential countries in the world, with Japanese anime captivating fans worldwide.
