Japan Economic Outlook
April 30, 2018Economic growth likely lost some momentum in Q1 as higher inflation and low wage increases weighed on consumer spending. Moreover, industrial production lost some steam in the period, while business confidence among large manufacturers moderated for the first time in over two years. That said, the shock is expected to be temporary, and the economy should continue posting solid growth rates throughout the rest of the year. External demand should recover in Q2 due to still resilient economic activity among Japan’s main trading partners, while a robust job market and works related to the 2020 Tokyo Olympics will boost domestic demand. In an attempt to strengthen the relationship between the two countries, on 18 April Prime Minister Shinzo Abe and U.S. President Donald Trump pledged to increase trade and investment between Japan and the U.S.
Japan Economic GrowthThe economy will grow this year on the back of the Bank of Japan’s (BoJ) ultra-loose monetary policy, healthy external demand and renewed fiscal support. Moreover, a tight labor market will continue to shore up household spending. The brewing trade war between China and the U.S., as well as a possible sudden slowdown in China are the main downside risks to Japan’s economic outlook. Met the why particular panelists see the economy growing 1.3% in 2018, which is unchanged from last month’s forecast, and 1.0% in 2019.
Japan Economy Data
5 years of Japan economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||0.06||-4.41 %||May 21|
|Exchange Rate||111.1||-0.35 %||May 21|
|Stock Market||23,002||0.11 %||May 21|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Japan Economic News
May 23, 2018
The Nikkei flash manufacturing Purchasing Managers’ Index (PMI) decreased to 52.5 in May from April’s revised 53.8 (previously reported: 53.3), marking the lowest print since August 2017.
May 21, 2018
Nominal yen-denominated merchandise exports increased 7.8% in annual terms in April, accelerating from March’s 2.1% rise.
May 18, 2018
In April, the core consumer price index fell 0.1% compared to the previous month in seasonally-adjusted terms, matching March’s 0.1% drop. Core inflation edged down from 0.9% in March to 0.7% in April.
May 17, 2018
Core machinery orders—a leading indicator of capital spending over a three to six month period—declined in March for the first time in three months.
May 16, 2018
Japan’s economy ground to a halt at the start of 2018, contracting for the first time in nine quarters.