Fiscal Balance in Japan
Japan - Fiscal BalanceWhile 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 - Fiscal Balance Data
|Fiscal Balance (% of GDP)||-9.5||-9.0||-8.5||-6.2||-5.4|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.08||14.29 %||Jul 26|
|Exchange Rate||111.2||-0.64 %||Jul 26|
|Stock Market||20,050||0.48 %||Jul 26|
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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.
July 20, 2017
Nominal exports valued in yen increased 9.7% from the same month last year in June, following May’s 14.9% increase.
July 20, 2017
The Bank of Japan (BoJ) left its monetary policy stance at its 19–20 July meeting, voting to continue with its program of Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control as long as is necessary to achieve and maintain its 2.0% inflation target.
July 10, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the second consecutive month in May, casting doubts about the strength of firms’ capital spending.
July 3, 2017
Consumer sentiment declined from 43.6 in May to 43.3 in June.