08
Mar
Modest growth in Japan propped up by the global recovery
Japan is benefitting from the global recovery. The forecast weakness of the yen could last. Exports are recovering. Weak domestic demand. Positive prospects for the Nikkei.
Key points
- Japanese GDP moved up +0.3% in 4th quarter 2016
- Exports are propping up the recovery
- Domestic demand remains too sluggish
- GDP should increase +1.5% in 2017
- Leading indicators are now more optimistic than industrial production
- The forecast weakening of the yen did partially materialise
- The spectre of deflation is fading with the drop in the yen
- Monetary policy is stable
- No prospects for bonds
- Japanese consumers remain uncertain
- Japanese companies’ profits are taking off
- The Nikkei is looking for a new catalyst
