Japan Economics Weekly Fossil fuel reliance, Japanese banks in Russia The recent spike in energy prices has highlighted just how reliant Japan still is on imported energy. Renewable energy production will need to be ramped up significantly to shield the economy from... 25th February 2022 · 6 mins read
Japan Economics Weekly Vaccine boost, surging manufacturing profits Services spending finally showed signs of life last quarter, underlining that the vaccine boost is finally filtering through. Another reason to be confident about the outlook is that consumer price... 18th February 2022 · 3 mins read
Japan Economics Weekly BoJ sets its stall out, three more weeks of restrictions The Bank of Japan’s first unlimited fixed rate auction in three-and-a-half years is likely to send a strong signal to investors that +0.25% is right now a clear line in the sand for 10-year JGB yields... 11th February 2022 · 7 mins read
Japan Economics Weekly Economy back in recovery mode next month Omicron disruption to supply chains was already holding back industrial production in some sectors in December. And with domestic cases surging since then the recovery will have gone into reverse at... 4th February 2022 · 5 mins read
Japan Economics Weekly Stricter listing rules to lift profitability further Profit margins of listed Japanese firms hit a record high at the end of last year despite the headwinds from goods shortages and soaring input costs. That rise has a large structural component... 28th January 2022 · 6 mins read
Japan Economics Weekly Restrictions may not last long, key Shunto approaching With restrictions this week expanded to cover most of Japan’s economy, and surging infections already starting to cause staff shortages in some industries, GDP is only likely to tread water this... 21st January 2022 · 4 mins read
Japan Economics Weekly Strict isolation rules could cause severe shortages While we think Japan’s economy entered 2022 just above its pre-pandemic level, consumer spending will probably be knocked back this quarter by light-touch restrictions which are likely to be reimposed... 14th January 2022 · 7 mins read
Japan Economics Weekly Recovery in industrial activity will run out of steam Japan’s car industry has rebounded quickly from the disruptions caused by Delta waves across South-East Asia a few months ago. But amidst persistent supply shortages, output hasn’t quite returned to... 7th January 2022 · 4 mins read
Japan Economics Weekly Rapid manufacturing rebound, boosters, yen forecast The rapid recovery in car exports in November probably has further to run and continued strength into next year poses upside risks to our forecast for a cumulative 3.3% rise in Japanese exports across... 17th December 2021 · 7 mins read
Japan Economics Weekly Wage-boosting tax breaks, Toyota setback The government’s new plan to offer firms more generous tax deductions for raising wages is unlikely to lift wage growth to 3% as targeted by PM Kishida. But with smaller firms being offered corporate... 10th December 2021 · 7 mins read
Japan Economics Weekly Omicron restrictions wouldn’t jolt BoJ into action Even if Omicron proves more transmissible than Delta, its impact on Japan’s economy could vary substantially depending on how deadly it is, how well it evades vaccines, and PM Kishida’s appetite for... 3rd December 2021 · 5 mins read
Japan Economics Weekly Government seeks to revive soggy chip industry The breakdown of PM Kishida’s new supplementary budget released today showed that ¥600 billion has been allocated to reviving semiconductor manufacturing in Japan. The centrepiece of the plan is a new... 26th November 2021 · 6 mins read
Japan Economics Weekly Stimulus package large but smaller than reported The stimulus unveiled today by PM Kishida’s new cabinet was broadly in line with expectations despite inflated headline figures quoted in media reports which we think are padded with loans and... 19th November 2021 · 4 mins read
Japan Economics Weekly More cash handouts on the way The latest survey data suggest that consumer spending is still struggling to gain momentum even as the bulk of the population are fully vaccinated and virus cases have plunged. However, with car sales... 12th November 2021 · 8 mins read
Japan Economics Weekly PM Kishida’s plans to raise wages sound familiar PM Kishida’s plans to lift wage growth largely follow the Abenomics blueprint of tax incentives, targeted pay hikes in sectors facing severe labour shortages and rapid minimum wage hikes. A tax on... 5th November 2021 · 5 mins read
Japan Economics Weekly Services recovering, industry still ailing This week’s activity data provided further evidence that supply shortages in the car sector are holding back the recovery. We expect car production to rebound this quarter as factories in Southeast... 29th October 2021 · 4 mins read
