Japan Economic Outlook
November 21, 2017Strong global growth continued to propel economic activity in Q3, leading the economy to expand for the seventh consecutive quarter and marking the longest stretch of growth in more than 15 years. Japan’s export-driven economy expanded 1.4% in seasonally-adjusted annualized terms in Q3, which was down from Q2’s stellar 2.6% expansion. Although the deceleration was a result of weaker dynamics at home, the domestic economy should pick up steam in Q4, as the slowdown mostly reflected temporary factors such as bad weather. Recent data confirms that private consumption strengthened so far in Q4, with consumer confidence hitting a four-year high in October. Prime Minister Shinzo Abe accelerated talks to revise Japan’s pacifist constitution following his landslide victory in the 22 October general election, and his party is expected to send its proposals to the national assembly ahead of January’s session.
Japan Economic GrowthEconomic growth should lose some steam in 2018 as the tailwinds that propelled growth this year start to wane. Moreover, structural factors will continue to weigh on growth. On the upside, global growth should remain robust next year, while the Central Bank will likely keep its ultra-loose monetary policy. FocusEconomics panelists see the economy growing 1.2% in 2018, which is unchanged from last month’s forecast. For 2019, they see growth at 1.0%.
Japan Economy Data
5 years of Japan economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.06||-4.41 %||Dec 06|
|Exchange Rate||112.3||-0.35 %||Dec 06|
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Japan Economic News
December 15, 2017
According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers jumped to the highest level since 2006, suggesting that the economy is gathering momentum.
December 13, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) rebounded strongly in October, suggesting that firms have increased capital expenditure due to healthy global economic growth.
December 8, 2017
The economy continues to grow at a solid pace, as strong overseas demand for Japanese goods amid healthy global growth translates into resilient manufacturing and investment activity.
December 4, 2017
Consumer sentiment rose from 44.5 in October to 44.9 in November, marking the highest level since September 2013.
December 1, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from October’s 52.8 to 53.6 in November, recording the strongest print since March 2014.