<Tr> <Th> Foreign reserves </Th> <Td> 1.249 trillion (June 2017) </Td> </Tr> <Tr> <Td_colspan="2"> Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars . </Td> </Tr> <P> The economy of Japan is the third - largest in the world by nominal GDP and the fourth - largest by purchasing power parity (PPP). and is the world's second largest developed economy . Japan is a member of the G7 . According to the International Monetary Fund, the country's per capita GDP (PPP) was at $37,519, the 28th highest in 2014, down from the 22nd position in 2012 . Due to a volatile currency exchange rate, Japan's GDP as measured in dollars fluctuates widely . Accounting for these fluctuations through use of the Atlas method, Japan is estimated to have a GDP per capita of around $38,490 . </P> <P> Japan is the world's third largest automobile manufacturing country, has the largest electronics goods industry, and is often ranked among the world's most innovative countries leading several measures of global patent filings . Facing increasing competition from China and South Korea, manufacturing in Japan today now focuses primarily on high - tech and precision goods, such as optical instruments, hybrid vehicles, and robotics . Besides the Kantō region, the Kansai region is one of the leading industrial clusters and manufacturing centers for the Japanese economy . Japan is the world's largest creditor nation . Japan generally runs an annual trade surplus and has a considerable net international investment surplus . As of 2010, Japan possesses 13.7% of the world's private financial assets (the third largest in the world) at an estimated $13.5 trillion . As of 2015, 54 of the Fortune Global 500 companies are based in Japan, down from 62 in 2013 . </P>

Where does japan fall on the economic spectrum