Our Japan Chart Pack has been updated with the latest data and our analysis of recent developments.
We expect GDP growth to slow to a crawl this year, weighed down by weak consumption growth and sluggish export growth. While the virtuous cycle between prices and wages has shown signs of a slowdown in recent months, it will soon receive a boost when inflation rebounds early this year. This should give the Bank of Japan confidence to proceed with monetary tightening and we now expect a rate hike in March.
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