Japan Economic Outlook
May 31, 2022
As expected, preliminary data showed the economy contracted in Q1. Record Covid-19 case numbers led the government to introduce quasi-state-of-emergency measures, which along with rising inflation caused private consumption to fall. In Q2, a recovery is under way. Its driving force is private consumption: Most Covid-19 restrictions were scrapped in late March, more than offsetting the drag from higher inflation. Consumer confidence and the services PMI have risen in the quarter so far. Further reopening will boost private spending even more; some foreign tourists will be permitted entry from June. This said, the external sector appears to be dragging on activity, with export growth and the manufacturing PMI sliding in the quarter so far, due to supply bottlenecks and a slowing global economy due to war in Ukraine, Covid-19 lockdowns in China, and higher global inflation and interest rates.Japan Economic Growth
GDP growth should pick up this year thanks to strong domestic demand. Looser Covid-19 restrictions will boost private consumption, while investment should recover. That said, our panelists project that the economy will remain below pre-pandemic levels at the end of the year. A weaker external sector will drag on momentum. FocusEconomics panelists see the economy expanding 2.0% in 2022, which is down 0.2 percentage points from last month’s forecast, and 1.8% in 2023.Japan Economy Data
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Japan Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | -0.02 | -4.41 % | Dec 30 |
| Exchange Rate | 108.7 | -0.35 % | Jan 01 |
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Japan Economic News
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Japan: Industrial activity dips in April
June 14, 2022
Industrial production declined 1.4% month-on-month in seasonally-adjusted terms in April (March: +0.3% mom).
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Japan: Composite PMI picks up in May
May 24, 2022
The S&P Global Composite Purchasing Managers' Index (PMI) rose to 51.4 in May from April's 51.1.
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Japan: Core inflation comes in at highest level since March 2015 in April
May 20, 2022
Core consumer prices—which exclude fresh food—increased 0.20% from the previous month in April, a smaller increase than March's 0.40% rise.
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Japan: Core machinery orders rebounds in March
May 19, 2022
Core machinery orders—which cover the private sector, exclude volatile orders and are a leading indicator for capital spending over the coming three-to-six-month period—expanded 7.2% in month-on-month seasonally-adjusted terms in March, which contrasted February's 9.8% decrease.
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Japan: Merchandise exports grow at a more moderate pace in April
May 19, 2022
Yen-denominated merchandise exports rose 12.5% over the same month last year in April, following March’s 14.7% upturn.
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