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Shop window in Tokyo: Consumption rose at least slightly
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PHILIP FONG / AFP
The Japanese economy is only recovering from the corona pandemic with a delay.
After a one-quarter break, it grew again in the fourth quarter.
Gross domestic product (GDP) in the world's third-biggest economy after the US and China grew 0.6 percent from October to December, recovering from a revised 1.0 percent decline in the previous quarter, according to the latest government data.
However, the increase was much smaller than the 2.0 percent forecast, suggesting that the global economic slowdown could hurt the country's export-dependent recovery.
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After negative growth in the July-September period, the recovery is not very impressive ,
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said Toru Suehiro, chief economist at broker Daiwa Securities.
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We can expect consumption to recover as spending on services stabilizes.
But it is difficult to forecast a strong recovery, also given the pressure from rising inflation.
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Private consumption, which accounts for more than half of Japan's GDP, rose 0.5 percent in the fourth quarter, in line with the mid-market forecast.
Foreign demand contributed 0.3 percentage points to growth.
Tourism, housing construction and the car market should stimulate the economy
Since the corona entry restrictions were lifted, the ailing Japanese economy has benefited primarily from the tourism sector.
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In the near future, the foreign trade balance is likely to improve, mainly due to more foreign tourists arriving and domestic consumers spending slightly more ,
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said John Vail, chief global strategist at wealth manager Nikko.
The reasons for this are that consumers have become accustomed to the higher prices and
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the supplies on the car market are flowing better
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Residential construction is also likely to pick up a bit.
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All in all, the Japanese economy should continue to grow steadily in the first half of this year ,
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Vail said.
Economy Minister Shigeyuki Goto said the economy is on the path to recovery as the impact of the pandemic eased.
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Rising inflation and the global economic slowdown are risks.
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But the tendency of companies to invest has not decreased.
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We are not too pessimistic about the outlook.
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The government in Tokyo nominated economist Kazuo Ueda as the new central bank governor on Tuesday.
The 71-year-old is to succeed long-time central bank chief Haruhiko Kuroda in early April – and is considered an opponent of a hasty exit from loose monetary policy.
Apr/Reuters