Japan Economic Outlook
June 25, 2019Comprehensive GDP data for the first quarter confirmed that the relatively robust expansion was mostly propelled by a sharp decline in imports of goods and services. Underlying domestic demand, meanwhile, appeared weak as reflected by lackluster private consumption in Q1, raising concerns over Prime Minister Shinzo Abe’s plans for household demand to drive economic growth. Turning to the second quarter, consumer confidence tumbled to an over three-year low in May, which does not bode well for a recovery in consumer spending and leaves Abe at a crossroad whether to move ahead with a controversial sales tax in October. Japan’s economic prospects are quickly worsening as escalating trade tensions, especially between China and the United States, could further erode global demand and, in turn, Japan’s all-important external sector.
Japan Economic GrowthFaltering global demand is expected to weigh on growth this year. Conversely, the economy should benefit from frantic front-loading of consumer purchases ahead of October’s sales tax. The key downside risks are further trade restrictions, which would reduce demand for Japanese goods, as well as weaker global growth, which could strengthen the yen. FocusEconomics panelists see the economy growing 0.8% in 2019, which is unchanged from last month’s forecast, and 0.5% in 2020.
Japan Economy Data
5 years of Japan economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||-0.14||-4.41 %||Jul 11|
|Exchange Rate||108.5||-0.35 %||Jul 11|
|Stock Market||21,644||0.40 %||Jul 11|
Request a 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
July 18, 2019
Nominal yen-denominated merchandise exports fell 6.7% year-on-year in June, up from May’s 7.8% decline.
July 18, 2019
The core consumer price index fell 0.1% in month-on-month seasonally-adjusted terms in June, matching May’s reading. Core inflation declined from 0.8% in May to 0.6% in June.
July 8, 2019
Core machinery orders, a leading indicator for capital spending over a three- to six-month period, posted the largest contraction in eight months in May, suggesting that trade tensions between China and the United States are weighing on global demand and impacting on capital expenditure.
July 1, 2019
Consumer sentiment declined from 39.4 in May to 38.7 in June.
June 28, 2019
Industrial production rose 2.3% on a month-on-month and seasonally-adjusted basis in May, following April’s 0.6% increase.