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Japanese Economic Cycle Dashboard

Based on the System of National Accounts (SNA), the "Cycle of the Japanese Economy" shows how value-added produced circulates throughout the economy through distribution and expenditure. Digital Agency is working with Cabinet Office to develop a dashboard to make this flow chart easier to understand and use.
Definitions of items treated in the cycle of the Japanese economy (such as production value and employee compensation) are summarized in " Explanation of items treated in the cycle of the Japanese economy ".

We are conducting a survey to improve this dashboard. Please use the form below to send us your opinions.

Feedback Form on Japanese Economic Cycle Dashboard (Duration: 1 minute)

Notice

  • May 19, 2026: We released the "Dashboard on the Cycle of the Japanese Economy"

Table of Contents

1. Cycle of the Japanese economy

It shows the overall cycle of production, distribution, and demand for goods and services in the Japanese economy.

Full-Screen View of the "Cycle of the Japanese Economy" Dashboard

  • *Year-on-year comparisons and percentages are calculated automatically based on actual amounts.

To create added value from capital and labor

Companies and sole proprietors combine labor (workers and laborers) and capital (non-financial assets such as buildings, machinery, and software) to produce goods and services. In the production process, "intermediate inputs" such as raw materials and utilities are used up, and value added is calculated by subtracting these from output. The total added value created by all domestic producers is gross domestic product (GDP) from the production side, and is a basic indicator of the productivity of the Japanese economy as a whole.

Full-Screen View of the "Cycle of the Japanese Economy" Dashboard

  • *Value added (gross) / gross domestic product = value of output - intermediate inputs

To share the added value produced

The value added that has been produced is distributed to each entity that has contributed to production. It is distributed to employers who have provided labor as employee remuneration and to enterprises as operating surplus, which is the profit from business activities. Since sole proprietors cannot distinguish between business profit and remuneration for their own labor, the two are combined and distributed as "mixed income."

Subsidies are funds granted by the general government to market producers. Subsidies reduce the cost of enterprises, so the operating surplus is overstated accordingly. To adjust for this, subsidies are deducted in the calculation of distribution-side GDP.

National income at factor prices is the sum of employee compensation, operating surplus / mixed income, and income (net) from overseas. National disposable income (the total amount of income at the disposal of the entire population) is calculated by adjusting the income balance with overseas and current transfers.

Full-Screen View of the "Cycle of the Japanese Economy" Dashboard

  • *Value added (gross) / gross domestic product = compensation of employees + operating surplus and mixed income + taxes and subsidies on production and imports + consumption of fixed capital
  • *National income (at factor cost) = compensation of employees + operating surplus and mixed income + income from abroad
  • *National disposable income = national income (expressed in factor costs) + taxes on production and imports - subsidies + current transfers from abroad.

To spend and save from national disposable income

National disposable income ultimately consists of either "consumption" or "savings." Final consumption expenditure consists of private consumption by households (food, housing, services, etc.) and government consumption by the general government (spending on public services). The remainder that is not consumed is savings. Savings is a different concept from "savings," such as bank deposits, and it can also be negative, with consumption exceeding income.

Full-Screen View of the "Cycle of the Japanese Economy" Dashboard

  • *National disposable income = private final consumption expenditure + government final consumption expenditure + savings.

Recycle into the next capital

The net increase in non-financial assets (domestic real asset balance) is the difference between gross capital formation (investment in fixed assets such as capital investment and housing investment + inventory change) and fixed capital consumption (decrease in the value of fixed assets due to production activities).

Savings and capital transfers from overseas are sources of investment for the next production cycle. If the total of savings and net receipts of capital transfers exceeds capital formation, it becomes "net lending (fund surplus)", and if it falls below, it becomes "net borrowing (fund shortage)". This difference is carried over to the next economic cycle as changes in capital accumulation and the balance of foreign assets in the next period.

Full-Screen View of the "Cycle of the Japanese Economy" Dashboard

  • *Changes in non-financial assets = gross capital formation - consumption of fixed capital
  • *Changes in net assets = savings + statistical discrepancies + capital transfers from abroad, etc.
  • *Net Lending (+) / Net Borrowing (-) = Change in Net Assets - Change in Non-Financial Assets

2. Other Dashboards for GDP

3. Solicitation of Opinions

Feedback Form on Japanese Economic Cycle Dashboard (Duration: 1 minute)

4. Important Points

Data Sources

This dashboard was prepared based on data published by the Cabinet Office Economic and Social Research Institute for the Annual Estimate of National Accounts (Cabinet Office) .
The various figures in the dashboard are scheduled to be updated around March after the publication of the ANA.

True or false information

For more information about this dashboard's data-whether true or false, see True or False: Circular Flow Diagram of the Japanese Economy Dashboard .

5. Contact Information

For inquiries about GDP and published results