Japan Economic Outlook
July 24, 2018Recent data corroborates that the anticipated recovery in Q2 was likely weaker than expected. Subdued wage growth continues to dent consumer confidence. Industrial production, furthermore, declined in May for the first time in four months. However, with a smaller-than-expected drop in industrial production and robust export growth in June, external demand appears to be fueling activity within Japanese factories. Leading indicators for Q3 signal that economic activity will remain relatively weak, mostly reflecting mounting global economic uncertainties. The Tankan survey for manufacturers showed a less positive assessment of the country’s economic outlook as trade barriers increase globally and geopolitical risks threaten to strengthen the yen. On the upside, the 2020 Tokyo Olympics is boosting capital expenditure, providing stimulus to the economy, while the new trade deal with the European Union should support the external sector.
Japan Economic GrowthDespite decelerating from 2017’s outstanding performance, the economy should continue to expand at a brisk pace this year, supported by the Bank of Japan’s (BoJ) ultra-loose monetary policy, a tightening labor market and construction projects related to the 2020 Tokyo Olympics. Rising protectionism globally and a sharp appreciation of the yen due to persistent geopolitical threats are the main downside risks to the outlook. Met the why particular panelists see the economy growing 1.1% 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.
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|Bond Yield||0.11||-4.41 %||Aug 07|
|Exchange Rate||111.4||-0.35 %||Aug 07|
|Stock Market||22,663||0.11 %||Aug 07|
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Japan Economic News
August 13, 2018
Japan’s economy returned to growth in the second quarter after contracting in the first quarter of this year.
August 11, 2018
Core machinery orders, a leading indicator for capital spending over a three- to six-month period, contracted at a steeper-than-expected pace in June.
July 31, 2018
Consumer sentiment inched down to 43.5 in July from 43.7 in June, surprising market analysts who expected it to rise to 47.8.
Japan: BoJ remains committed to ultra-loose monetary policy, introduces forward guidance to alleviate negative effects
July 31, 2018
At its 30–31 July meeting, Bank of Japan (BoJ) board members voted seven-to-two to keep monetary policy unchanged, as expected by market analysts.
July 20, 2018
The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in June, up from May’s flat reading. Core inflation was up a notch to 0.8% in June from 0.7% in May, which was in line with market expectations.