The Japanese economy is a highly developed market economy, often de8ined as an example of East Asian economic model. It ranks third in the world in nominal GDP and fourth in purchasing power parity (PPP). Japan's economy soared in the second quarter of 2023, posting growth at an annualized 6 percent rate, one of the best 8igures that Japan has seen since the mid-1990s and good enough to make it the top performer among major global economies. The Japanese government actively welcomes foreign investment and has set ambitious goals for increasing inbound foreign direct investment (FDI).

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