11
Mar
Downward revision of the economic outlook for Japan in 2022
Disappointing economic recovery in 2021. Weak Q1 2022. Government stimulus package supports consumption. Difficult environment for exports. Contained
inflation. Weak yen. Opportunities for the Nikkei.
Key points
- Japanese GDP disappointed in Q4 2021
- Risk of GDP contraction in Q1
- Growth prospects overestimated in 2022
- Falling PMIs threaten industrial production
- Household consumption suffers a double whammy
- Trade deficit is narrowing in the short term
- Inflation remains limited despite rising commodity prices
- BOJ not ready to change policy
- Ten-year yields back in positive territory
- Yen nears target against the USD
- New opportunities for Nikkei stocks
