Israel Japan | Business Guide | 2023

Key sectors and business opportunities in the Japanese market Healthcare: while Japan and Israel both enjoy high life expectancy rates, Japan suffers froma population decline (birth rate ~ 1 . 3 ) and subsequently, an aging population (~ 30 %above 65 ), while Israel’s population is young and growing (birth rate ~ 3 . 1 ). In light of the increase in spending on healthcare services, Japan has no choice but to expand the application of digital technologies and remotemedical care, to be able to continue providing excellent services at affordable costs. Israeli digital health start-ups have the solutions for this challenge. Moreover, Israel’s highly digitalized healthcare system, considered one of the best in the OECD, allows to provide high quality, universal, public healthcare services at less than 8 % of GDP. A Memorandum of Understanding (MoU) on Digital Health that was signed by the Ministers of Economy provides for favorable basis for bilateral collaborations. Homeland and cyber security: Japan is one of the safest countries in the world, enjoying a low crime rate and practically no political terrorism. A network of neighborhood police stations (‘kaban’) and high solidarity amongst its citizens make Japan the ideal place to lose valuable items as these are turned to their owners. However, the assassination of former Prime Minister Shinzo Abe and the increased tensionwith neighboring countries call for increased preparedness; the government intends to double the spending on defense from one to two percent of GDP, making Japan one of top three biggest spenders. 駐日イスラエル大使館 経済部 Israel Economic & Trade Mission in Japan Investment Japanese companies have been increasing investments in Israeli Hi- tech, reaching a new record of nearly 3 billion USD in 2021 , equivalent to nearly 16 % of total foreign investments that year (according to data collected by Harel-Hertz Investment House). This development is of significant importance, especially considering that less than a decade ago, the volume of investments fromJapan in Israel was relatively negligible. In addition, it should be noted that Japanese investments tend to be classified as strategic, aiming to connect with innovative solutions that could be deployed by the Japanese corporations. In the charts below the breakdown of exports of goods is shown: Bilateral Trade in Goods (million USD) GDP per capita (nominal, USD, 2021) 39,727 54,905 Annual GDP growth 2022 – 2.6% 2022 – 6.5% 2021 –1.5% 2021 – 8.7% Inflation Rate (December 2022) 4.0% 5.3% Ease of Doing Business Ranking (1=most business-friendly regulations) 30 35 Credit Rating (S&P Global) A+ AA- World Happiness Ranking (WHR 2022) 9 54 Israel-Japan > Business Guide > 2023 14 > General Information > Trade Figures