Current Account in Japan
Japan - Current AccountWhile the economy continues to sail along, some clouds have started to emerge in recent months. Wage growth remains limited, constraining a sustained recovery in domestic demand and failing to boost inflation expectations. Moreover, machinery orders—a leading indicator for capital expenditure—contracted for the second consecutive month in May, indicating weak investment in the near future. While exports continued to expand robustly in June, the recent surge in imports suggests that the contribution from the external sector to overall growth may have declined in Q2. In the political arena, Prime Minister Shinzo Abe suffered a severe defeat in the election of Tokyo’s metropolitan parliament. While his leadership has not yet been called into question, the result signals voters’ growing disaffection with the ruling Liberal Democratic Party (LDP) and threatens the prospects for Abe’s reelection as the party leader in 2018.
Japan - Current Account Data
|Current Account (% of GDP)||1.0||0.9||0.8||3.1||3.8|
5 years of economic forecasts for more than 30 economic indicators.
Japan Current Account Chart
Source: Bank of Japan and FocusEconomics calculations.
|Bond Yield||0.04||-14.58 %||Aug 16|
|Exchange Rate||110.2||-0.43 %||Aug 16|
|Stock Market||19,729||-0.12 %||Aug 16|
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August 14, 2017
The Japanese economy expanded healthily in Q2 on the back of a strong pickup in domestic demand.
August 10, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the third consecutive month in June, casting doubts about the strength of firms’ capital spending in the months to come.
August 2, 2017
Consumer sentiment inched up from 43.3 in June to 43.8 in July.
July 31, 2017
Industrial production rose 1.6% in June compared to the previous month in seasonally-adjusted terms, contrasting May’s 3.6% decrease.
July 24, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) fell from June’s revised 52.4 (previously reported: 53.1) to 52.2 in July.