Japanese companies stuck with second-oldest equipment in G7

Productivity breakthrough hinges on fresh burst of capital spending

20240314N factory worker

Japan's capital stock used to be the newest among the G7, but the country has fallen behind in investment. (Photo by Ryohei Shimizu)

HIROFUMI KANAOKA, Nikkei staff writer

TOKYO -- Japanese companies are using some of the oldest equipment among Group of Seven economies, a study by the Cabinet Office shows, highlighting the need for new investments to boost productivity.

The average age of Japanese capital stock, including factory equipment and software, was 11.8 years as of 2019, the study found. This was the second-highest figure among G7 members, behind only Italy's 13.3 years.

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