Japan Consumer Prices:

 Aricle Source:https://mainichi.jp/english/articles/20220826/p2g/00m/0bu/065000c

Article:

TOKYO (Kyodo) -- Core consumer prices in Tokyo jumped 2.6 percent in August from a year earlier, marking the fastest pace of gain in about eight years, government data showed Friday, fresh evidence of inflationary pressures from higher energy and food prices aggravated by a weak yen.

The figure in Tokyo, staying above the Bank of Japan's 2 percent target for the third straight month, is seen as a leading indicator of what to expect nationwide. Some economists expect the core consumer price index, excluding volatile fresh food items, across the nation to rise over 3 percent before year's end.

Ideas:

The Bank of Japan's 2.0 target has never had anything to do with supplier inflation or suppliers and companies passing on their costs to the next in the supply chain but more about consumer inflation or more consumer spending but at this point that seems like a long way off.

The consumer price index may well continue to increase but its all about suppliers passing on thier costs to the next in the supply chain.

Japanease companies and suppliers now understand they just can't keep absorbing the price increases as they are just too much for their profit margins.

The Japanese government can only do so much before they actually interfere in the market and cause more harm than good.

Article:

Tokyo's core CPI last saw a 2.6 percent rise in October 2014. Stripping away the effects of a consumption tax hike, the rise is the biggest since June 1992, the Ministry of Internal Affairs and Communications said. Tokyo has seen core consumer inflation accelerating for the 12th straight month.

The rising inflationary trend, however, is unlikely to change the BOJ's stance of keeping its ultralow rate policy anytime soon, given that its board members believe the recent bout of commodity inflation will only be temporary and monetary easing is needed to support the economy of the resource-scarce nation facing downside risks.

The BOJ's dovish stance is in stark contrast with its global peers, including the U.S. Federal Reserve and the European Central Bank, which have already been tightening their policies to tame soaring inflation. BOJ board member Toyoaki Nakamura said Thursday now is not the right time for the BOJ to join the global "rate-hike competition," adding that the central bank will spur wage growth by persisting with monetary easing.

Ideas:

The Bank of Japan might be correct in that the Japanese economy is still much to weak to follow what the US and the EU are doing in increasing interest rates. There might be too many side effects to increasing the rate as now we see and hear of a possible recession in 2023 just because of the possible side effects affecting the global economy.

Even though Prime Minister Kishida keeps asking for to increase wages it looks like they really don't have any room, at least for many companieas, as raw material costs and energy cost increases keep reducing most company's profit margins.

Some or many companies might have lost a lot of revenue and profts during the pandemic and many might not yet even near recovering from the losses so even though Prime Minister Kishida wants companies to increase wages they might not be a position to do it just yet.

Article:

By item, energy prices surged 25.6 percent from a year ago. Excluding perishables, food prices gained 3.8 percent, and more price hikes are expected in the coming months as Japanese companies plan to pass on higher costs, economists say.

The recent rise in core consumer inflation is partly because the year-on-year effect of sharply lower mobile data fees has begun to fall out of the data. The nationwide core CPI gained 2.4 percent in July, marking the sharpest rise in seven and a half years.

The government has been trying to lower retail gasoline and kerosene prices by providing subsidies to wholesalers and limiting the rise in the price of imported wheat that it sells to millers. Japanese Prime Minister Fumio Kishida has instructed officials to draw up a new inflation relief package by early September to ease the pain on households.

Ideas:

Energy costs, globally and not just in Japan might continue to increase but of course the weak yen is pushing up the price of energy imports too.

Japanese companies, because of the continued weak yen and the increase in imports and raw materials now know they have no choice but to pass on some all of their increase in costs to the next in the supply chain, which might be the final consumer.

The Japanease government has go to make sure the subsidies to wholalers are not just a one time thing but a continued activity as prices continue to increase even for importers, meaning a one time subsidy is not going to be enough when their prices keep increasing.

Prices controls can be both a positive and a negative for a market economy. It might be a good temporary way to stem the increase in prices but if allowed too long it might actually begin to interfere in the normal market situation.

The Japanease government seems to always say they are going to draw up plans but nothing really seems to be done about inflation other than maybe a one time 50,000 yen handout for low income families, which of course is never enough as it barely covers one month of food requirements. 

Article:

The pace of gain in inflation has varied from region to region due partly to differences in the weight applied to items based on such factors as the value and frequency of purchases.

Those in the northeastern region of Tohoku and Hokkaido -- areas where energy consumption is high due to low winter temperatures -- have seen bigger gains in the core CPI than those in the west, according to the government data for July. The city of Akita reported the biggest gain of 3.8 percent, while the city of Wakayama in western Japan saw the lowest rise of 1.5 percent.

"The effect of higher gasoline prices is felt more in areas where access to public transport is limited, and cars are the main means of transportation," said Naoko Ogata, a senior economist at the Japan Research Institute, adding that retailers, such as supermarkets, are more likely to raise prices in thinly populated areas.

Ideas:

Yes, different regions, like anywhere else in the world may see different uses of energy depending on the season and area. Okinawa might see more AC use and of course Tokoku and Hokkaido might see more use of fuel for heating costs.

Its obvious those areas everywhere in the world too that are not large metropolitan areas will see more car use and higher gasoline prices compared to those areas with a lot of  public transport.

As the demand for car gasoline goes up of course the prices are going to go up too. But at the same time, with available public transport systems it might act like a substitute resource for those who have acces to limit their driving because of the continued increase in gas prices.

And its logical that supermarkets, in thinly populated areas, might increase their prices due to economies of scale and increase shipping costs to thinly populataed areas, meaning places like Tokyo and Osaka with its hugh population centers can easily get products and so on in bulk scale and maybe not so easy in thinly populated areas.

Have a nice day and be safe!

Japan Trade Deficit:

 Article Source:  https://mainichi.jp/english/articles/20220817/p2g/00m/0bu/022000c

Article:

TOKYO (Kyodo) -- Japan posted a trade deficit of 1.44 trillion yen ($10.7 billion) in July against a backdrop of rising import prices driven by Russia's invasion of Ukraine and the yen's weakness, remaining in the red for the 12th straight month, government data showed Wednesday.

Imports jumped 47.2 percent from a year earlier to 10.19 trillion yen, increasing for the 18th straight month and bringing the deficit to all-time high for July. Exports rose 19.0 percent to 8.75 trillion yen, up for the 17th month in a row.

The values of imports and exports were both the highest since comparable data became available in January 1979, according to the Finance Ministry's preliminary report.

Ideas:

 It should be remembered that these are values and not volume. If we were to look at the volume of imports and exports there might be a different situation.

As the yen continues to weak, it drives up the price or value of imports which make it look like imports are more thean exports.

The weak yen also helps the value of exports as for example a weak yen against a strong dollar will make the value of Japanese exports in the US have more value.

As the value of imports continues to increase those along the supply chain including the final consumer will have to pay more.

Just what the Japanese government can do remains to be seen besides price controls and government subsidies to try and curb inflation.

Article:

Analysts warn that the outflow of income under the prolonged trade deficit is hurting companies and households at home at a time when the broader economy shows few signs of sharp recovery from the novel coronavirus shock.

Imports soared as prices for crude oil from the United Arab Emirates and those for coal and liquefied natural gas from Australia were higher.

Exports gained due largely to brisk shipments of automobiles and semiconductor manufacturing devices to the United States and those of diesel fuel to the Philippines, the ministry said.

Ideas:

Importers have to pay for the imports which means money is leaving the Japanease economy which means companies and consumers now have less to spend in the Japanease economy overall.

The Japanese economy might not recover on its own for some time. which why now even more that ever the Japanese government needs to open the spickets to international tourism and allow everyone in who has been vaccinated and let them take advantage of the weak yen and let them spend like crazy.

Import prices don't look to be going down any time soon so the Japanease government or the Bank of Japan need to find ways to stem the continued price increases.

Japanese car sales, especially Toyota, have always been a bright spot for Japanese exports. Semiconductor shipments might still in a hazy situation as there are those who still say there is a shortage of chips and it might last one more year.

Article:

A ministry official attributed the expansion in imports and exports mainly to rising prices, while saying crude oil prices were around twice as high compared with the same month last year.

The value of petroleum imports rose to 1.14 trillion yen in the reporting month from a year earlier, increasing for the 16th consecutive month, the ministry said.

The average foreign exchange rate in July stood at 136.05 yen, with the yen sliding 23.1 percent against the dollar from the previous year, it added.

Ideas:

A weak yen again helps exports but it not so good for imports. Maybe at this time the Bank of Japan is trying to balance both imports and exports.

For example, because maybe the large exports companies have more sway in the Japanese economy, the Bank of Japan has been somewhat hesitant to make any moves against the weak yen, which benefits the exporters.

Perhaps they are hoping that even though there is a trade deficit, the value of imports more than the value of exports that the trade deficit won't get too far out of control.

You would think as oil and gas supplies from Russia might be compromised it might open up other supply chains globally and it might help prices. But that doesn't seem to be happening just yet.

Just who weak wil the Bank of Japan allow the yen to weak before anything is done. But then again maybe too much intervention in the exchange markets might not be a good idea, and maybe the idea is just let the markets move on their own.

Article:

With imports from the United States surging 46.9 percent to 1.06 trillion yen, increasing for the 17th consecutive month, Japan's trade surplus with the world's biggest economy decreased 22.4 percent from a year earlier to 512.8 billion yen.

By item, imports of U.S. liquefied natural gas and coal significantly rose amid Japan's efforts to reduce its dependence on Russian energy in response to Moscow's aggression against Ukraine, which started in late February.

Imports from and exports to China, the world's second largest economy, also rose, up 34.6 percent and 12.8 percent from the previous year, respectively.

Ideas:

As the US Federal Reserve continues to increase the key rate the US dollar and the Japanese yen get further apart which means the dollar keeps getting stronger and the yen keeps getting weaker which makes imports from the US cost even more.

But even though we see economies such as Japan trying to reduce its dependence on Russia the weak yen and the US dollar are not making it easier for the Japanese economy and import products.

China is still a major economic player despite its lockdown situation and Japanese companies need to find ways to keep doing business, despite the Chinese economy challenges.

Article:

Personal computers and mobile phones contributed to the surge in imports from China to 2.21 trillion yen, while electronic components including chips as well as audio visual devices helped exports climb to 1.78 trillion yen.

Looking ahead, Kazuma Kishikawa, an economist at Daiwa Institute of Research, said overall exports may improve at a moderate pace but that the positive effects of the yen's depreciation are unlikely to emerge immediately.

A falling yen usually supports exports by making Japanese products cheaper abroad and boosts the value of overseas revenues in yen terms, while pushing up imports.

Ideas:

As Chinese products are becoming more popular and normal in all markets globally there might be more more Chinease products in the coming years.

Its kind of like Sony products and other Japanease products when they were very popular globally. The came the wave of Korean products such as LG and Samsung and now maybe the wave its going to be Chinese products.

The continued weak yen which eventually improves the value of Japanese exports. But right now there seems to be a slight downward trend in global trade which might be slowing down Japanease exports at the present time because of Ukraine situation and the continued global inflation situation.

Have a nice day and be safe!

Japanese Companies and Wages:

 Article Source:  https://mainichi.jp/english/articles/20220816/p2g/00m/0bu/035000c

Article:

TOKYO (Kyodo) -- Solid profits at major Japanese companies in recent earnings reports are unlikely to translate into near-term wage hikes in broad sectors due to the risk of a global recession, dashing Prime Minister Fumio Kishida's hopes for higher pay to blunt the impact of rising prices.

The Japanese currency's drop to 24-year lows against the U.S. dollar has served as a major profit driver for some blue-chip companies, boosting profits earned overseas and inflating the value of assets held abroad in yen terms.

Companies from automakers and components suppliers to energy companies reported upbeat earnings for the April-June quarter and revised upward full-year projections, driven by the yen's slide.

Ideas:

It seems like an unfortunate situation for Japanese wage earners that despite the solid earnings in Japanese companies, they still can't find a way to increase wages for their workers.

There could be combination of factors involved. Such as Japanese companies, which used to be focused on the long-term have become too much like western companies and only think of the short-terrm or the next quarters results.

Another idea is that Japanese companies have become just too risk adverse and don't want to risk any kind of extra spending possible, even if the spending helps the company overall.

Japanese companies, some or many, used to see the worker as a integral part of the company like stakeholders. Maybe those days are long gone in how Japanease companies see their workers.

And of course the present day situation might be too much for some companies as they are too focused on their profit margins have forgotten how to plan long-term for the good of the company,

And yes, the weak yen might be a strong point for some companies, especially export companies but its a major challenge for many companies such anyone who imports products from overseas.

Article:

Toyota Motor Corp. earlier this month raised its net profit forecast for the year to March 2023 to 2.36 trillion yen ($17.7 billion) from its previous forecast of 2.26 trillion yen.

"A weaker yen has a big positive impact on our sales," a Toyota official said.

The world's largest automaker by volume said the weaker yen pushed up its operating profit outlook by 670 billion yen. The company expects an operating profit of 2.40 trillion yen for this fiscal year.

Honda Motor Co. also lifted its full-year operating profit forecast recently due in part to the yen's weakness, while Subaru Corp. and Mitsubishi Motors Corp. reported strong growth in net profit for the three months that ended in June.

Ideas:

Maybe these major companies are seeing the benefits of the weak yen, but there are probably just as many companies not doing too well as a weak yen drives up prices for imports and there are just as many not doing too good.

And this is a major idea that the Bank of Japan, all along, has been thinking about. A weak yen helps the major export companies but at the same time its not so good for import companies and the Bank of Japan has to weigh the cost/benefit situation of all in the economy.

And another question might be even though Toyota and others are seeing the benefits of a weak yen, are they considering increasing the wages of their workers or just putting their profits in the banks.

Most likely the big companies are or have continued to increase the wages of their workers but what about all the other companies on the fringes whose profit margins are razor thin due to the weak yen.

Article:

Among seven major trading houses, six including Mitsubishi Corp. posted record net profits for the quarter with their resource development projects benefiting from the yen's weakening along with higher commodity prices after Russia's invasion of Ukraine disrupted supplies.

Video game giant Nintendo Co. posted a record net profit of 118.98 billion yen for the three-month period, as the weaker yen raised its overseas profits, offsetting sluggish sales of Switch consoles amid a chip shortage.

According to an SMBC Nikko Securities survey of 1,440 companies listed on the Tokyo Stock Exchange, their combined net profit in the April-June quarter rose 9.2 percent from a year ago to 12.03 trillion yen.

Ideas:

So lets be positive here and say as we see many companies are now experiencing positive profits, maybe they are going to increase the wages of their workers.

But are the wage increases going to be enough to offset the increase in inflation to where the average consumer now feels good about his pay and he can pay his bills and still have enough left over to go out and spend some in the economy.

Its seems this is the challenge that Prime Minister Kishida faces in getting companies to increase wages enough to where wage earners/consumers feel good enough to go out and spend without worrying about how they are going to pay their bills.

Wage earners/consumers have got to feel good about how much disposable income they have each month to go out once a week or so for shopping, restaurants, and so on.

If not consumer spending is never going to reach its potential in Japan wil be a major challenge for the Bank of Japan and how to increase consumer spending enough to see real economic growth.

Article:

The solid earnings come as Kishida continues to call on major companies to consider pay hikes. When the premier attended a gathering last month hosted by the Japan Business Federation, the most influential business lobby in Japan, he asked top executives once again for a 3 percent rise in wages.

Salary increases are a pillar of his government's efforts to mitigate the impact of rising commodity and food prices, which pose a major challenge for Kishida and were partly responsible for his Cabinet's approval rating slumping to a low of 51 percent in a Kyodo News survey last month.

The Bank of Japan is sticking to its ultraeasy monetary policy in stark contrast to the global trend of tightening and has repeatedly urged the need for robust wage growth.

Ideas:

Prime Minister Kishida can talk all he wants or suggest all he wants but if companies are not willing to take some risks and increase wages there might not be much he can do.

Last December, 2021, he also asked for a 3 percent increase in wages. The fact he is asking again suggests not much progress has been made in compaies increasing wages.

Perhaps the Japanese government, as an incentive, just an idea, should place a tax on these companies, whose profits are increasing yet still refuse to give any kind of increases to their employees.

But then of course, companies will find ways to hide their profits to make it look like they really don't have any profits to avoid the taxes and avoid paying wage increases to their workers.

The Bank of Japan most likely sees that a weak yen is good for the major Japansese export companies while weighing the cost/benfits for the rest of the economy.

Article:

The central bank says higher salaries should help spur consumer spending and eventually raise prices in a sustainable manner. The BOJ, which has long been battling deflation in Japan, sees the current hikes as temporary and caused by external factors.

Executives at Japan's two biggest airlines -- ANA Holdings Inc. and Japan Airlines Co. -- said recently that their basic policy is to reward their employees with higher wages when their earnings improve. ANA Holdings is the parent of All Nippon Airways Co.

ANA Holdings posted its first net profit in three years in the quarter that ended in June and JAL said its net loss narrowed in the same quarter from a year earlier.

Ideas:

Yes, higher salaries are the key to helping the economy improve which of course will increase overall consumer spending as consumers feel better about their extra disposable income.

And as consumer spending in the economy reaches as certain level companies will see there is increased demand for their products and services they will begin to increase prices as demand has reached as sustainable level in the Japanese economy.

But that is not going to happen if companies don't play their part and increase salaries for their employees.

The Bank of Japan will continue to maintain is low rate situation as they most likely feel there are just too many side-effects if the increase the key rate.

In 2020 or 2021 both JAL and ANA mentioned they were not going to layoff any employees because of the pandemic situation and instead were going to use the strategy of not hiring new workers and or through natural retirements going to maintain their present position.

Lets hope ANA and JAL follow through with wage increases for their employees and maybe other companies will see JAL and ANA as case examples and will do the same in the future.

Article:

But economists say the current solid earnings are likely to provide limited room for pay hikes.

"There is just not enough momentum to enable wage increases" across the board, said Saisuke Sakai, senior economist at Mizuho Research & Technologies.

"The positive impact of a weaker yen on exporters is seen as a temporary factor and nonmanufacturers, which account for the majority of Japanese companies, are still recovering from the pandemic," he said.

Ideas:

The economist may be correct, because after two plus years of maybe less than normal profits companies still don't have any room to give any kind of wage increases.

Just because ANA and JAL say they are going to increase wages in the future doesn't mean other companies have the ability to do the same.

But to be fair to companies they are caught in the short-term trap of quarterly earnings, stockholder anger about earnings and they can't afford to consider wage increases or even long-term strategies these days.

And yes, the weak yen might be a strong positive for export companies but for the rest of the economy and the majority of comapnies in the Japanese economy its a major challenge and yes, most likely they are still recovering from the pandemic and it might continue even into 2023.

Article:

The gloomy global economic outlook on the back of inflation and the impact of the prolonged war in Ukraine are likely leave top executives cautious about increasing personnel costs.

"We want to reward our employees" for the improved results, JAL Senior Managing Executive Officer Hideki Kikuyama told Kyodo News after a press briefing for its latest earnings. "But we are not in a situation where we can raise basic wages immediately."

JAL's quarterly net loss reflects the fact that travel demand is still recovering from the pandemic. A recent resurgence of new cases in Japan leaves the outlook uncertain.

Ideas:

Companies these days, and of course maybe with good reason, are always finding ways to be cautious as there are just too many challenges out there.

Its good that JAL at least said they are willing to increase wages whenver they can. At least they said something which is a positive sign. 

Travel, both domestic and international, might not recover soon as the pandemic is still hovering over the industry.

The shinkansens might be full and Haneda flights might be somewhat full but after two plus years of less than good revenues and profits its going to take time for companies like JAL and ANA to fully recover, expescially as fuel prices keep increasing.

Even if JAL, ANA, and the other budget airlines have full capacity on their flights its going to take time to overcome the two plus years of losses.

Article:

Some industries such as the utility sector are feeling the pinch from the weaker yen as the currency raises import costs, making it difficult to pursue salary increases.

Seven of Japan's 10 major power companies including Tokyo Electric Power Company Holdings Inc. reported a net loss for the three months that ended June. Soaring fuel prices triggered by Russia's war in Ukraine made thermal power generation more expensive.

Ideas:

The weak yen is having a major effect on some industries but the Bank of Japan might feel the increaing interest rates to make the yen and dollar somewhat equal might have too many side-effects for the Japanease economy overall.

Here is where the Japanese government can continue to step in and give subsidies to companies such as the utility companies as a a way to make sure they don't pass on their increased costs to the next in the supply chain including the final consumer.

But just how much should a government interfere in the normal workings of a market economy. But maybe at this point some kind of price controls with subsidies on a temporary basis might be a good idea.

Article:

Mizuho Research's Sakai says the uncertain business environment will keep the number of companies capable of raising wages low.

"To achieve the sustainable wage increases that the government wants, companies need to increase productivity" rather than relying on external positive factors such as a weaker yen, Sakai said. "The bar is still high."

Ideas:

Yes, increasing productivity is always a good idea, but what does that mean exactly.

How do you increase productivity in some of the traditional Japanease companies if they have done the same thing for many decades.

And how long will it take and how disruptive is it going to be for the average worker in the company.

Companies might willing to change and willing to increase productivity but at what cost for the company and its workers.

Companies might not be willing to to just change everything all at once and might need time, even years to become more productive.

Innovation should be at the heart of every company. If companies don't learn or know how to innovate and change their productivity will suffer and their profits will continue to suffer.

Japanese companies have got to find a balance between keeping its original idea of employees as important stakeholders and at the same time keeping its-self open for innovation and change and improved productivity.

Unfortunately the worker these days is seen as a cost and not a resource in a company,

Have a nice day and be safe!

Japan GDP Growth:

 Article Source: https://mainichi.jp/english/articles/20220815/p2g/00m/0bu/007000c

Article:

TOKYO (Kyodo) -- Japan's economy in the April-June period grew a real 0.5 percent from the previous quarter, or an annualized 2.2 percent, on the back of recovering private consumption following the removal of coronavirus restrictions in March, government data showed Monday.

Real gross domestic product, the total value of goods and services produced in a country adjusted for inflation, expanded for the third consecutive quarter following nearly flat growth in the January-March quarter, according to the preliminary report released by the Cabinet Office.

Ideas:

Japan's economy is going to take some time to get back to the pre-pandemic level as supply chain disruptions along with energy cost and supply challenges continue to challenge Japan and other economies.

Private consumption or private spending is always the weak link related to Japanese GDP growth, as consumer spending in Japan is not near the equal of other advanced economies.

There are many reasons for the lack of consumer spending in Japan but two of the main challenges are a lack of wage growth over the years and then add in the ageing society situation, as those about 65/70 tend to spend less.

Article:

Private consumption, which accounts for more than half of the country's GDP, rose 1.1 percent, increasing for the third straight quarter, as more people dined out and traveled after Japan lifted COVID-19 restrictions in late March in all areas covered, including Tokyo and Osaka, amid a downward trend in the number of new infections.

Capital investment, another key pillar of domestic demand, grew 1.4 percent, following a 0.3 percent contraction in the previous quarter, propelled by software investment, according to the data.

Annualized real GDP in the latest quarter totaled 542 trillion yen ($4.1 trillion), exceeding the 540 trillion yen logged in the October-December period of 2019 before the pandemic hit Japan Despite the third consecutive quarterly increase in real GDP, some economists said the outlook remains unclear due to a resurgence of COVID-19 infections and higher prices that could dampen consumer spending.

Ideas:

Private consumption or consumer spending might be at the 50 percent level of Japan's GDP but again its not equal to other countries where consumer spending might be as much of 60 percent or more. 

If consumer spending in Japan can ever gets up to the 60 percent level of other advanced economies then Japan's GDP growth might reach the two percent level on a sustained basis.

But until Japan can see real wage growth that may never happen or not in the near future.

Capital investment might have seen a temporary surge but it shouldn't be seen as a leading indictaor just yet as there are too many variables out there are are slowing down the Japanese economy.

The outlook is very unclear at this time with energy costs continuing to increase, materials costs continuing too and add in the supply chain challenges, and even more the weak yen is causing a lot of challenges for the Japanese economy.

Article:

Saisuke Sakai, senior economist at Mizuho Research & Technologies, pointed out that GDP in the reporting period was still lower than the average of the four quarters in 2019, as personal spending in its last quarter was dented by a consumption tax hike in October that year.

"While Japan's economy has seen positive growth, it is still halfway through in its recovery," Sakai said, adding a resurgence of coronavirus infections could discourage people from going out even amid an absence of restrictions, hitting personal consumption in the next quarter.

Public investment also rose 0.9 percent in real terms from a decrease of 3.2 percent in the previous quarter.

Ideas:

Traveling to Japan in September of 2019, there was a fever pitch or a spending frenzy going on as all stores had sales on to encourage shoppers to buy before the Oct. 1 tax increase went into effect. 

That was also the time of the Japan 2019 Rugby World Cup and as Japan was doing very well there was an exitement in the air along with spending frenzy going on at the same time.

Japan might be halfway through its recovery, but the Japan economy is not going to get back to the 2019 level until it opens up fully to international tourists and even then its going to take some time to get to the 31 million that came to Japan in 2019.

Airline flight shortages, pilot shortages, and fuel surcharge inceases are going to delay the full opening of international tourists to Japan for a while.

Article:

Exports and imports increased 0.9 percent and 0.7 percent, respectively.

Daishiro Yamagiwa, minister in charge of economic revitalization, said the preliminary GDP report showed the world's third-largest economy is gradually recovering.

"We would like to put the Japanese economy on a higher growth path" toward a virtuous cycle of sustainable growth led by private sector demand and the distribution of wealth, Yamagiwa said in a statement.

Ideas:

Exports and imports seemed to be trending down globally as supply chains, energy costs, along with overall global inflation appears to be causing a slight pause in overall global trade.

Yes, the Jaapanese economy appears to be gradually recovering, but the real problem is that it seems to always be in the gradual recovery mode.

Japan, at the present time, is not going to get to that "higher growth path" until Japan can see some real wage growth. And not juse short-term one time fix but it has to be a sustainable wage growth period.

Japanese companies seem to be too risk adverse to consider any real wage strategies at this time as they all seemd to be woried about energy costs, raw material costs, and the weak yen.

Article:

In nominal terms, unadjusted for price changes, Japan's economy grew 0.3 percent, or an annualized 1.1 percent, the data showed.

While imported energy and food prices remain high amid Russia's invasion of Ukraine, many companies are unable to fully pass on their higher costs to retail prices, experts said.

Sakai added it is necessary to keep a close eye on how economic slowdowns overseas would affect Japan's growth in the coming quarters.

Ideas:

At the present time a 1.1 growth for the year might all that Japan can expect for now because of the Ukraine situation, continued energy cost increases, raw material cost increases, not to mention the continued China and supply chain challenges.

Many companies might be willing to pass on some or all of thier costs but they face a reluctant group that is too used to low prices or even delfation.

Its going to take some time before the general consumer public begins to realize that evetually, for the good of the economy and for the good of society, there has got to be more balanced in the economy which has to include price increases and not a continued period of deflation.

Companies can't grow if they are always having to absorb every cost increase they have without being able to increase prices sometimes and or pass on some of their costs to the next in the supply chain including the final consumer.

Its got to be a give and take between all groups for a fully balanced market economy.

Have a nice day and be safe!