Japan’s economy grew more strongly than most had anticipated in the third quarter and inflation may even have turned positive at the beginning of the fourth. But neither development is likely to be sustained. In contrast to the rest of Asia, Japan faces a long period of sluggish and occasionally negative growth, persistent deflation, rising fiscal risks and further monetary easing, which in turn points to further weakness in the yen.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services