10
Dec
Sharp slowdown in Japan: GDP drops by -0.6% in Q3
Sharpest contraction of GDP since 2014. Economic rally in Q4. Stabilisation of the yen. Leading indicators weighed down by uncertainty. Inflation reaches +1.4%. Nikkei on the upswing.
Key points
- Unexpected growth shock in Q3; Japanese GDP dropped by -0.6%, or -2.5% yoy
- Exports pick up in Q4
- Trade balance turned negative
- Imports jumped by +19.9%
- Increase in wages not sufficient to boost consumption
- Leading indicators weighed down by uncertainty
- Yen weaker still in 2019
- Inflation reached +1.4%
- Outlook still mediocre for Japanese bonds
- Nikkei and Japanese stocks on the upswing
