Japan Economics Update "Fiscal stimulus" just more of the same In announcing yet another fiscal stimulus package, heavy on public works spending and subsidies for popular projects, Japan’s new government is simply repeating what the others have done before. If... 11th January 2013 · 1 min read
Japan Economics Update Will there be any real change at the Bank of Japan? Expectations that a higher inflation target and a “new accord” with the government will prompt much more aggressive monetary easing have continued to weaken the yen. However, a closer look at the... 9th January 2013 · 1 min read
Japan Economics Update Auto sales recovering but cash still tight for consumers Vehicles sales increased for a third month running in December suggesting that demand is rebounding following the expiry of the eco-car subsidy. However, demand for other consumer durables remains... 7th January 2013 · 1 min read
Japan Economics Update Further easing risks undermining Bank of Japan independence At its Policy Board meeting today, the Bank of Japan extended its asset purchase program and announced a review of its inflation target. Since Sunday’s election, the incoming LDP government has... 20th December 2012 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Nov.) The incoming LDP government is likely to put increasing pressure on the Bank of Japan to enact more aggressive monetary easing. But the latest data show that monetary conditions are already extremely... 19th December 2012 · 1 min read
Japan Economics Update What the LDP win means for Japan's economy As had been widely expected, Sunday’s election has returned the Liberal Democratic Party of Japan to power after a three-year absence. We can expect a two-pronged assault on deflation with significant... 17th December 2012 · 1 min read
Japan Economics Update Poor Tankan increases pressure on Japan's policymakers The Bank of Japan’s Tankan survey showed business conditions deteriorated sharply in Q4, adding to evidence that the economy is likely to have contracted for a third consecutive quarter. The winner of... 14th December 2012 · 1 min read
Japan Economics Update Situation bad, but not getting any worse The latest figures on Japan’s economy suggest that it has already fallen into recession and is unlikely to emerge before next year. However, whilst the economic backdrop is bad, it is at least not... 10th December 2012 · 1 min read
Japan Economics Update Weak manufacturing sector dragging on investment The Ministry of Finance’s quarterly investment survey was weaker than most had expected, but shouldnonetheless mean a slightly upward revision to Q3 GDP. Unlike the forthcoming Tankan and... 3rd December 2012 · 1 min read
Japan Economics Update Dismal October data will fuel debate ahead of election The publication of the main economic figures for October is likely to heavily influence the debate ahead of December’s elections. Dismal figures are expected, and will probably leave the main parties... 29th November 2012 · 1 min read
Japan Economics Update How much difference would a 2% inflation target make? The LDP’s manifesto for the elections in December, published today, includes a commitment to persuade the Bank of Japan to raise its inflation target from 1% to 2%. This has added to the downward... 21st November 2012 · 1 min read
Japan Economics Update Exports to remain a drag on growth A quick look at what’s behind the recent slide in Japan’s exports confirms that the main drag is the renewed downturn in the global economy. Exports to China have not deteriorated more than those to... 21st November 2012 · 1 min read
Japan Economics Update What next for the Bank of Japan? The election of an LDP-led government would be unlikely to result in the dramatic shift in policy at the Bank of Japan than many now seem to expect. Proposals that threaten the independence of the... 20th November 2012 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Oct.) The Bank of Japan’s asset purchase program continues to drive growth in the monetary base. There are few signs of this feeding through to stronger credit demand. 20th November 2012 · 1 min read
Japan Economics Update Japanese economy plunging into recession Japan’s economy may already be in recession. The sharp fall in Q3 GDP was the first contraction this year but increasingly looks like it will not be the last. We are now expecting a contraction in Q4... 12th November 2012 · 1 min read
Japan Economics Update A sharp contraction expected with further falls to come Consensus expectations for Japan’s Q3 growth have been slashed over the last month. However, based on today’s dire numbers the contraction in Q3 could be even worse. What’s more, a further fall in... 8th November 2012 · 1 min read
