United Kingdom and Japan
The relationship combines industrial investment, financial services, science and growing defense cooperation. Japan and the United Kingdom share technology projects and trade agreements, without all their mechanisms being mutual defense treaties.
Analysis reviewed: 2026-10-07 · Indicators updated: 2026-10-07The Hiroshima Accord and reciprocal access
The Hiroshima Accord of May 2023 expanded a partnership including security, economic prosperity, science and technology.
Investment, automotive industry and services
Economic relations combine goods, services and businesses established in the partner country.
Bilateral indicators
Blank cells: data unavailable.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | 22,919.34 M USD | 2025 · UN Comtrade / GBR |
| Goods: United Kingdom to Japan | 7,904.11 M USD | 2025 · UN Comtrade / GBR |
| Goods: Japan to United Kingdom | 15,015.23 M USD | 2025 · UN Comtrade / GBR |
| Services trade | 17,500 M GBP | 2025 · Source |
| Export share: United Kingdom to Japan | 1.42 % | 2025 · UN Comtrade / GBR |
| Export share: Japan to United Kingdom | ||
| Investment stock: United Kingdom in Japan | 3,200 M GBP | 2024 · Source |
| Investment stock: Japan in United Kingdom | 102,000 M GBP | 2024 · Source |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
- Goods trade
- 2025 · UN Comtrade / GBR · Goods; full year; GBR reporter. Exports normally FOB and imports CIF according to the reporter's coverage. No addition of mirror reports.
- Goods: United Kingdom to Japan
- 2025 · UN Comtrade / GBR · Goods; full year; GBR reporter. Exports normally FOB and imports CIF according to the reporter's coverage. No addition of mirror reports.
- Goods: Japan to United Kingdom
- 2025 · UN Comtrade / GBR · Goods; full year; GBR reporter. Exports normally FOB and imports CIF according to the reporter's coverage. No addition of mirror reports.
- Services trade
- 2025 · UK DBT / ONS · Services, full calendar year 2025; total published by ONS, seasonally adjusted. It is not added to goods trade in USD or rolling four-quarter data.
- Export share: United Kingdom to Japan
- 2025 · UN Comtrade / GBR · Goods share: GBR exports to the partner / the same reporter's exports to the world, same year.
- Investment stock: United Kingdom in Japan
- 2024 · UK DBT / ONS · Direct investment stock at the end of 2024; directional basis and immediate counterpart; investment minus disinvestment. September 2026 publication.
- Investment stock: Japan in United Kingdom
- 2024 · UK DBT / ONS · Direct investment stock at the end of 2024; directional basis and immediate counterpart; investment minus disinvestment. September 2026 publication.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
| Indicator | United Kingdom | Japan |
|---|---|---|
| Nominal GDP | 4 trillion USD2025 · World Bank | 4.44 trillion USD2025 · WB |
| GDP per capita | 57,601.96 USD2025 · World Bank | 35,951.05 USD2025 · WB |
| GDP growth | 1.39 %2025 · World Bank | 1.19 %2025 · WB |
| Policy interest rate | 1.25 %2026-09-24 · BoJ | |
| Inflation · annual average | 3.88 %Annual average · 2025 · World Bank | 3.17 %Annual average · 2025 · WB |
| Inflation · latest year-on-year figure | 3.1 %Year-on-year · 2026-08 · ONS | 1.9 %Year-on-year · Aug. 2026 · Statistics JP |
| Unemployment | 4.75 %ILO est.2025 · World Bank | 2.45 %ILO est.2025 · WB |
| Budget balance (% of GDP) | -5.4 %IMF est.2025 · IMF | -1.1 %IMF est.2025 · IMF |
| Gross public debt (% of GDP) | 102.3 %IMF est.2025 · IMF | 206.5 %IMF est.2025 · IMF |
| Current account balance (% of GDP) | -2.43 %2025 · World Bank | 4.86 %2025 · WB |
| Population | 69,487,0002025 · World Bank | 123,366,7342025 · WB |
| Area | 243,610 km²2023 · World Bank | 377,969 km²2023 · BM / FAO |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDUnited Kingdom: 2025 · World Bank · Official World Bank series; observation period, not download date.Japan: 2025 · World Bank
- GDP per capita
- Current USD per personUnited Kingdom: 2025 · World Bank · Official World Bank series; observation period, not download date.Japan: 2025 · World Bank
- GDP growth
- Annual real change (%)United Kingdom: 2025 · World Bank · Official World Bank series; observation period, not download date.Japan: 2025 · World Bank
- Policy interest rate
- Central bank instrument (%)Japan: 2026-09-24 · Approximate target for the uncollateralised overnight rate · Bank of Japan
- Inflation · annual average
- Average annual change in headline CPI (%)United Kingdom: 2025 · Average annual CPI change (%) · World Bank · Official World Bank series; observation period, not download date.Japan: 2025 · Annual average change in the CPI (%) · World Bank
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency statedUnited Kingdom: 2026-08 · Headline CPI; change relative to the same month of the previous year · ONS · Headline CPI, not CPIH or core inflation.Japan: 2026-08 · Change in headline CPI from the same month of the previous year (%) · Statistics Bureau of Japan · Published: 2026-09-18 · National headline CPI, 2025 base; includes fresh food and energy. The measure excluding fresh food (1.7%) and the preliminary Tokyo release are not used.
- Unemployment
- % of the labour force; definition used by the stated institutionUnited Kingdom: 2025 · ILO modelled estimate, percentage of the labour force · World Bank · ILO est. · Official World Bank series; observation period, not download date.Japan: 2025 · World Bank · ILO est.
- Budget balance
- General government (% of GDP)United Kingdom: 2025 · IMF · IMF est. · IMF WEO general-government estimate. Retains the source’s fiscal year when it differs from the calendar year.Japan: 2025 · IMF — World Economic Outlook · IMF est.
- Gross public debt
- General government (% of GDP)United Kingdom: 2025 · IMF · IMF est. · IMF WEO general-government estimate. Retains the source’s fiscal year when it differs from the calendar year.Japan: 2025 · IMF — World Economic Outlook · IMF est.
- Current account balance
- % of GDPUnited Kingdom: 2025 · World Bank · Official World Bank series; observation period, not download date.Japan: 2025 · World Bank
- Population
- PeopleUnited Kingdom: 2025 · World Bank · Official World Bank series; observation period, not download date.Japan: 2025 · World Bank
- Area
- Total area in km²; territorial coverage of the sourceUnited Kingdom: 2023 · World Bank · Official World Bank series; observation period, not download date.Japan: 2023 · Total area, including inland waters; source's territorial coverage · World Bank · FAO
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
United Kingdom to Japan
| Product or sector | Value / share |
|---|---|
| Machinery and mechanical appliances | 2,201.5 M USD2025 · Source |
| Land vehicles and components | 1,010.1 M USD2025 · Source |
| Pharmaceutical products | 897 M USD2025 · Source |
| Electrical and electronic equipment | 452.3 M USD2025 · Source |
Japan to United Kingdom
| Product or sector | Value / share |
|---|---|
| Machinery and mechanical appliances | 3,804.1 M USD2025 · Source |
| Land vehicles and components | 3,587.6 M USD2025 · Source |
| Electrical and electronic equipment | 1,512.2 M USD2025 · Source |
| Pharmaceutical products | 288.2 M USD2025 · Source |
How trade has changed
Billions of current USD · full calendar years
View chart figures
| Period | Total | United Kingdom to Japan | Japan to United Kingdom |
|---|---|---|---|
| 2021 | 17,162 | 7,568.3 | 9,593.7 |
| 2022 | 20,264.6 | 7,146.1 | 13,118.5 |
| 2023 | 21,831.4 | 6,978.4 | 14,852.9 |
| 2024 | 21,021.7 | 7,617.9 | 13,403.7 |
| 2025 | 22,919.3 | 7,904.1 | 15,015.2 |
Connections between people
Scientific cooperation connects universities, laboratories and businesses. Research calls fund projects and are not a count of all students or residents. [4] [5] [1]
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from United Kingdom living in Japan | ||
| Residents from Japan living in United Kingdom | ||
| Study and training: United Kingdom in Japan | ||
| Study and training: Japan in United Kingdom | ||
| Academic stays: United Kingdom in Japan | ||
| Academic stays: Japan in United Kingdom | ||
| Travel: United Kingdom to Japan | ||
| Travel: Japan to United Kingdom |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
The Hiroshima Accord and reciprocal access
The Hiroshima Accord of May 2023 expanded a partnership including security, economic prosperity, science and technology. The reciprocal access agreement signed that year establishes rules facilitating activities between Japanese and British forces. It organizes cooperation and temporary presence and must not be confused with a general mutual defense clause. Contacts include exercises, cybersecurity and coordination with other partners. Its importance for both countries is practical: planning joint activities, reducing legal uncertainties and working on capabilities and industries requiring continuity over several years. [1] [2]
Investment, automotive industry and services
Economic relations combine goods, services and businesses established in the partner country. Japanese investment in the United Kingdom is particularly important for industry, employment and supply chains; British data verify the strong asymmetry between the two direct investment positions. The bilateral trade agreement and CPTPP application between both from December 15, 2024, add access rules. Financial services, intellectual property and business services expand a relationship that cannot be described solely through cars or machinery. Figures in pounds published by the United Kingdom remain separate from customs trade in USD. [1] [3]
Developing capabilities and knowledge together
GCAP brings together the United Kingdom, Japan and Italy to develop a future fighter aircraft. The December 2023 institutional treaty creates a governance framework; a development program does not mean the new aircraft is already in service. Civilian cooperation includes science, semiconductors, health and advanced connectivity. A joint 2026 call funds British and Japanese research on communication technologies beyond 5G. For universities and companies, these programs involve their own partners, funding and requirements. This is specific technological collaboration, not a generic assertion of affinity between governments. [4] [5] [1]
The scale of the two economies
The United Kingdom's reference nominal GDP is 4002.6 billion USD in 2025, compared with 4435.2 in 2025 for Japan. The reference populations are 69.49 million (2025) and 123.37 million (2025), respectively. In the same year, the United Kingdom's nominal GDP was 0.9 times that of Japan. The figures contextualize market size; they do not in themselves describe well-being, individual wealth or political influence. IMF estimates or demographic extrapolations retain their markings in the table. A ratio is not calculated when the periods do not match. [9] [10] [11] [12]
Recent developments
Recent developments and latest available data · Reviewed: 2026-10-07
GCAP expansion in July 2026
On 21 July 2026, the British government announced Canada's entry as GCAP's first observer country. Observer status does not equate to becoming one of the three founding members or assuming the same industrial allocation. The announcement shows third parties' interest in a program still under development. In parallel, trade agreements and scientific cooperation maintain a civilian aspect of the relationship. Useful follow-up must distinguish research deliverables, actually recorded investment and new project announcements; these are different bilateral activity indicators. [6] [4] [5]
Observed economic exchange
In 2025, recorded goods trade between the United Kingdom and Japan totaled 22,919.3 million USD. Shipments from the United Kingdom to Japan were 7904.1 million USD; those in the opposite direction were 15,015.2 million USD. UK shipments to the partner represented 1.42% of its goods exports to the world, using the same year and reporter. A single customs declaration is used for both directions. This annual flow does not include all services activity or subsidiaries' local sales and is not added to accumulated investment capital. [7]
Cross-border services
Services trade was GBP 17,500 million in 2025, according to the ONS total published in the British profile. Services, full calendar year 2025; total published by ONS, seasonally adjusted. It is not added to goods trade in USD or rolling four-quarter data. [8]
Recorded direct investment
The UK's direct investment position in Japan was 3200 million GBP in 2024. Direct investment stock at the end of 2024; directional principle and immediate counterpart; investment minus disinvestment. September 2026 publication. [8]
Japan's direct investment position in the United Kingdom was 102,000 million GBP in 2024. Direct investment stock at the end of 2024; directional principle and immediate counterpart; investment minus disinvestment. September 2026 publication. [8]
Milestones and consequences
- 2023
Reciprocal access
A framework for cooperation between forces is signed. [2]
- 2023-05
Hiroshima Accord
The strategic, economic and technological agenda is expanded. [1]
- 2023-12-14
GCAP institutional treaty
Joint development with Italy is organized. [4]
- 2024-12-15
CPTPP application
Treaty preferences between both countries begin. [3]
- 2026-07-21
Canada as an observer
GCAP opens a new form of participation. [6]
Sources and data
Periods and scope of the figures
Each figure retains its period, unit, definition and source. Announcements, contracts and results are not interchangeable. Empty cells do not mean zero. Customs data for 2025 are not presented as activity observed during later crises.
- Hiroshima Accord
Government of the United Kingdom · Institutional source · Accessed: 2026-10-07
- Reciprocal access agreement for forces
Government of the United Kingdom · Institutional source · Accessed: 2026-10-07
- CPTPP application dates
Government of the United Kingdom · Institutional source · Accessed: 2026-10-07
- GCAP program institutional treaty
UK Ministry of Defence · Institutional source · Document: 2023-12-14 · Accessed: 2026-10-07
- Joint advanced connectivity program
UKRI / EPSRC · Institutional source · Document: 2026-06-15 · Accessed: 2026-10-07
- Canada's entry as an observer in GCAP
UK Ministry of Defence · Institutional source · Document: 2026-07-21 · Accessed: 2026-10-07
- Annual TOTAL X/M; 2025; reporter 826; partners 0,392,792
UN Comtrade / GBR · Institutional source · Accessed: 2026-10-07
- Release 24 September 2026; p.4 calendar 2025 services; p.1 and p.16 2024 FDI stock; immediate counterparty
UK DBT / ONS · Institutional source · Accessed: 2026-10-07
- NY.GDP.MKTP.CD; country ISO and year preserved; no military data; exact requested country subset independently re-fetched and values compared
World Bank · Institutional source · Accessed: 2026-10-07
- Official statistics
World Bank · Institutional source · Accessed: 2026-09-17
- SP.POP.TOTL; country ISO and year preserved; no military data; exact requested country subset independently re-fetched and values compared
World Bank · Institutional source · Accessed: 2026-10-07
- Official statistics
World Bank · Institutional source · Accessed: 2026-10-06
- HS2 30; 2025; reporter 826; partners 392,792; X/M; annual goods
UN Comtrade / GBR · Institutional source · Accessed: 2026-10-07
- HS2 84; 2025; reporter 826; partners 392,792; X/M; annual goods
UN Comtrade / GBR · Institutional source · Accessed: 2026-10-07
- HS2 85; 2025; reporter 826; partners 392,792; X/M; annual goods
UN Comtrade / GBR · Institutional source · Accessed: 2026-10-07
- HS2 87; 2025; reporter 826; partners 392,792; X/M; annual goods
UN Comtrade / GBR · Institutional source · Accessed: 2026-10-07
Additional sources on products and human connections
- UN Comtrade / GBR
2026-10-07 · Accessed: 2026-10-07 · HS2 30; 2025; reporter 826; partners 392,792; X/M; annual goods.
- UN Comtrade / GBR
2026-10-07 · Accessed: 2026-10-07 · HS2 84; 2025; reporter 826; partners 392,792; X/M; annual goods.
- UN Comtrade / GBR
2026-10-07 · Accessed: 2026-10-07 · HS2 87; 2025; reporter 826; partners 392,792; X/M; annual goods.
- UN Comtrade / GBR
2026-10-07 · Accessed: 2026-10-07 · HS2 85; 2025; reporter 826; partners 392,792; X/M; annual goods.