Japan Industrial Output:

 Article Source: https://mainichi.jp/english/articles/20221031/p2g/00m/0bu/015000c

Article:

TOKYO (Kyodo) -- Japan's industrial output in September fell 1.6 percent from the previous month for the first decline in four months, affected by a slowdown in overseas economies, government data showed Monday.

The seasonally adjusted index of production at factories and mines stood at 98.6 against the 2015 base of 100, the government said in a preliminary report, keeping its basic assessment that output is "showing signs of picking up moderately."

The drop followed an upwardly revised increase of 3.4 percent in August, the Ministry of Economy, Trade and Industry said.

Ideas:

Industrial output it seems is always seasonal and or is never increase always in a linear trajectory as there are always going to business cycle challenges.

So even though there was a decrease of 1.6 percent, it should not be enough to really cause too much concern, as the Ministry of Trade mentions its most picking up moderately.

From a 3.4 increase in August to a 1.6 percent decrease in September resembles a business cycle type situation where are always going to be increases and decreases through a normal year.

Article:

Of the 15 industries covered by the survey, 11 logged output declines and four showed increases.

By sector, motor vehicles saw the biggest plunge of 12.4 percent from the previous month, dragged down by falls in motorbikes and vehicle components. The industry reported a decrease for the second consecutive month.

Inorganic and organic chemicals saw a decrease of 6.3 percent and production machinery a 1.8 percent fall, dented by parts and material shortages driven by rising prices, according to the data.

Ideas:

An economy is very complex as each sector doesn't show the same level of growth month, each quarter, or even each year.

Every sector has its own unique circumstances and each own set of variables that can drive supply and demand. 

It appears that many or some sectors are still experiencing parts and material shortages, will definitely affects overall supply and demand. 

It seems Japan industry or parts of Japan industry is still struggling with its supply chains which might be directly influence by what is happening China. 

Article:

The four industries reporting output rises included chemicals excluding inorganic and organic chemicals and medicine, which saw an increase of 6.8 percent from the previous month, the ministry said.

The index of industrial shipments decreased 2.4 percent to 95.2, the first drop in four months, while that of inventories increased 3.0 percent to 103.9, increasing for the fourth straight month.

Ideas:

Whenever there is a significant increase in inventories, it's a sign that demand is decreasing and or supply chain challenges.

However, inventories can be subject to seasonal variations and should not be considered a major change in demand and or supply chain challenges overall.

Even though inventories saw an increase for the fourth straight month its still not that much of a big deal as a reading of 103.9 is probably still not that much of an increase.

Article:

Based on a poll of manufacturers, the ministry expects industrial output to decline 0.4 percent in October and rise 0.8 percent in November.

"We would like to keep a close eye on the impact of a possible increase in COVID-19 infections in the future on domestic and overseas economies and material parts, as well as on the development of rising prices," a ministry official said.

Ideas:

As can be seen, industrial output is expected to decrease in October but increase in November, which shows industrial output is very seasonal and or subject to supply, demand and or supply chain challenges.

Supply chain challenges seem to a concern of the ministry and since the pandemic Japan industry has been having supply chain and parts material supply challenges.

Rising prices are still a major concern for many Japanese businesses and their profit margins continue to be compromised which means they most likely have to pass on their increase in prices to the next in the supply chain, including the final consumer.

Have a nice day and be safe!

Japan Inflation:

 Article Source: https://mainichi.jp/english/articles/20221028/p2g/00m/0bu/047000c

Article:

TOKYO (Kyodo) -- Core consumer prices in Tokyo gained 3.4 percent in October from a year ago, marking the sharpest increase in over 40 years, government data showed Friday, in fresh evidence of a weaker yen magnifying the inflationary pressures caused by higher commodity prices.

The key index of consumer inflation for Tokyo excluding volatile fresh food rose for the 14th straight month, with the speed of its increase picking up from 2.8 percent in September. It has stayed above the Bank of Japan's 2 percent target for the past five months.

Ideas:

The Bank of Japan must feel the Japanese economy is too weak for key rate increases but the difference between Japan and other economies is large when it comes to the key rate.

Consumer prices increased the most in 40 years, but the Bank of Japan seems to not be interested in inflation pressures on the general public.

But at the same time it must be remembered that the Bank of Japan's 2 percent target was never related to wholesale inflation but more importantly consumer demand and consumer inflation.

Article:

Tokyo's core CPI is an indicator of what to expect in the rest of the country. Economists forecast that the nationwide figure, which topped 3 percent in September, will rise further toward year-end, challenging the BOJ's efforts to stick to its ultralow rate policy.

Excluding the effects of multiple consumption tax hikes, the last time Tokyo's core CPI jumped 3.4 percent was in June 1982, according to the Ministry of Internal Affairs and Communications.

Ideas:

Inflation in Japan is not good as it reduces consumer spending in the economy, and as consumers see even more of the same in the future they might further reduce their spending as their disposable income is reduced even more.

It's even worse for low-income groups and or fixed-income groups whose income is severely squeezed even more as inflation gets worse over time.

In 2014 with a sales tax hike from 5 to 8 percent and in 2019 from 8 to 10 percent, each time there were decreases in consumer spending after the sales tax increases. But consumes, as usual became used to the sales tax increases.

But now, as inflation continues on in Japan, consumers might not get use to the continued inflation increases and continue to reduce their spending over time.

Article:

The data was announced while Japan is seeking to mitigate the negative impact of rising prices on households and businesses, with a fresh economic package that will include 29.1 trillion yen ($199 billion) in government spending.

The BOJ, however, will unlikely budge over the need to keep interest rates at extremely low levels to support the economy, based on the view that the recent pick-up in inflation should only be transitory, despite headline inflation temporarily hitting its 2 percent target.

Ideas:

A 29.1 trillion package might not be enough as the package needs to reach as many households in need as possible. 

Of course there will be detractors who think the Japanese government is spending too much and it's debt is already too high.

But now is not the time to worry about the debt with many households are still in trouble like during the pandemic.

And yes, the BOJ most likely is not going to budge and keep the interest rates extremely low for the time being.

If inflation is only transitory please ask the average person on the street if inflation is really only transitory.

Article:

Food prices in Tokyo jumped 5.9 percent, in a blow to consumers when wage growth remains tepid in Japan.

Energy prices also surged 24.2 percent, with electricity and city gas bills up over 26.9 percent and 29.3 percent, respectively. Gasoline and kerosene prices also rose but at a relatively slower pace, due to government subsidies given to wholesalers on condition of trying to mitigate higher costs for consumers. As Japan heads into the winter season however, energy demand is expected to rise further.

The gain in core CPI also came as the year-on-year impact of sharply lower mobile communication fees dissipated further.

Ideas:

If food prices are actually increasing what does that mean for either supermarkets or restaurants in Tokyo. Are consumers going to buy less at supermarkets. Are they going to eat less at restaurants.

Of course the real challenge is wage growth and many companies can't or refuse to increase wages to help their employees ad their profit margins are squeezed due to increased energy and material costs.

An increase of26.9 percent doesn't help families with their disposable income and the same with gas bills. When disposable incomes are reduced that means less spending in other areas in the economy, which Japan desperately needs at time time.

Government subsidies can only to so much and its a short-term fix. Everyone knows that wage growth is what is really needed for the Japanese economy but companies don't or can't find ways to increase salaries that time time.

Have a nice day and be safe!

Japan Economy Economic Plan:

 Article Source: https://mainichi.jp/english/articles/20221028/p2g/00m/0bu/020000c

Article:

TOKYO (Kyodo) -- Japan on Friday will unveil a fresh economic package that will include 29.1 trillion yen ($199 billion) in government spending, featuring steps to alleviate the pain of accelerating inflation and lift the economy out of the doldrums amid COVID-19, Russia's war against Ukraine and a weaker yen.

Faced with faltering public support, the government of Prime Minister Fumio Kishida is reducing household utilities bills as a major pillar of the package, as people tighten their purse strings due to higher fuel costs and more expensive food and everyday goods.

The total size of the stimulus package will likely reach 71.6 trillion yen, when spending by municipalities and companies is taken into account.

Ideas:

Any kind of economic package is probably needed to help households with inflation. But at the same time government can't do everything but it can do what it can.  

As household spending or consumer spending is linked to increases in inflation, the government should help to reduce the stress on households which might help with consumer spending over time.

Household utility bills reduce extra income that can be used in other areas of the economy, but if consumers/households keep having reduced disposable income, then there is not much left for other spending in the economy.

Article:

The massive spending plan comes despite the country's tattered public finances, with most of the necessary funds likely to be secured by issuing government bonds. The government is expected to submit an extra budget for fiscal 2022 through next March to the current parliamentary session.

Rising inflation has hit Japan while its economy recovers from the COVID-19 fallout much more slowly than in other advanced economies. Surging commodity prices and the yen's rapid fall of late are adding to its woes by inflating import costs for the resource-poor nation.

The government plans to lower household electricity bills by 7 yen per kilowatt-hour, meaning that an average household will save around 2,800 yen a month. Companies will receive support of 3.5 yen per kilowatt-hour, according to sources familiar with the matter.

Ideas:

Most likely before the pandemic Japan's economy wasn't as robust as it seemed so the reason why its taken so long for the Japanese economy to recover.

For example in 2019, there were a series of typhoons that ripped through Japan such as in the Chiba region, which caused a lot of damage. Then there was the 2019 sales tax increase which temporally reduced consumer spending, which seemed to take a long time for consumes to get used to the sales tax increase and the overall increase in prices.

So overall the end of 2019 and the beginning of 2020 wasn't the most robust time for the Japanese economy and it continued into the spring of 2020 which of course was the beginning of the pandemic.

Article:

For city gas charges, the government will provide support of 30 yen per cubic meter of consumption, enabling an average household to save about 900 yen a month.

The existing subsidies for oil wholesalers to lower retail gasoline and kerosene prices will be extended beyond December. They will be reduced from June next year, the sources said.

Japan, a country known for its years of chronic deflation, has seen its inflation speeding up at its fastest pace in over three decades. The gain has been mainly caused by surging energy, raw material and food prices amid Russia's war, with core consumer prices, a key gauge of inflation, topping 3 percent in September.

Ideas:

For the average household a 900 yen a month savings or support doesn't seem like that much.  Of course it might be much more depending on how much is used related to each household.

As the winter months approach most likely Japan is going to see more households using whatever fuel they use in their homes, which means even higher costs even as the government implements subsidies. 

Perhaps Japan got to used to its continuous deflation and when inflation began to increase in the Japanese economy most consumers didn't know how to deal with a sudden increase in prices which they hadn't seen for many years if not decades.

And when inflation did hit Japan consumers were not prepared and or didn't know who to do deal with it, which meant most likely a decrease in consumer spending in the Japanese economy. 

Article:

The impact of the yen's rapid depreciation has been increasingly felt, as the Bank of Japan maintains an ultralow rate policy while its global peers have already shifted to monetary tightening.

The economic package is also intended to ensure that the economy can reap the benefits of the weaker yen, by facilitating a recovery in inbound tourism and increased exports of Japanese farm products overseas.

To achieve more robust wage growth that would enable households to withstand the inflationary pressures, the government will include measures to promote it.

Ideas:

Perhaps the Bank of Japan feels the Japanese economy is just too weak to deal with all of the side affects related to an increase in rates. 

An increase in tourism is important but while globally its good that international tourists can return to Japan and take advantage of the weak yen, but the real bulk of tourists going to Japan are Chinese tourists which at the time is still a major challenge.

The weak yen will increase Japanese exports most likely as Japanese farm products seem to be growing in favor with overseas buyers it can only get better.

But the real challenge, as always, is wage growth which is badly needed in Japan for increase consumer spending and a deterrent to inflation increases.

But companies most likely are severely limited as their profit margins are restricted to the energy and raw material costs.

Article:

Wage growth is critical for the central bank's efforts to attain its inflation target and also for Kishida to realize his policy of wealth redistribution.

Other steps will include handing out 100,000 yen per mother expecting a child amid the rapid graying of the population and financially supporting the domestic output of grain, fertilizers and livestock feed after Russia's war raised supply concerns.

Japan's economy grew an annualized 3.5 percent in real terms in the April-June quarter, helped by the lifting of anti-coronavirus curbs that had weighed on demand. But economists expect growth likely slowed in the following quarter to September, with the global trend of monetary tightening raising recession concerns abroad.

Ideas:

The Bank of Japan most never reach is target of 2 percent related to consumer demand and consumer spending as long as wages are not increased significantly.

And just what is Prime Minister Kishidas' wealth distribution plan. Is it just increasing wages which haven't risen in decades. If so, companies at this time don't seem too enthusiastic to do what they can to help the overall economy.

Japan has a definite challenge in its ageing society along with its low birthrate. But it's doubtful much can be done except for real structural changes related to the working conditions of women including higher wages for women that are equal to men. 

An economy is very complex and as such some sectors in the Japanese economy might have reached a 3.5 percent real growth but also some sectors might not have reached the same level.

Article:

Ruling party lawmakers have stepped up calls for the government to aim for 30 trillion yen and critics argue its size came first despite Kishida's stated stance of putting priority on both size and substance in drawing up the package.

Initially, the size of government spending was around 25 trillion yen. But the government decided to increase it to around 30 trillion yen at the last minute, taking heed of the ruling Liberal Democratic Party, which sought more.

The BOJ's purchases of government bonds have left borrowing costs depressed at rock-bottom levels. This environment has helped the government step up spending despite its debt being more than twice the size of the economy.

Ideas:

Most likely even at 30 trillion yen it's not going to be enough to help everyone in the Japanese economy related to inflation and increased prices. 

A government can only do so much and it might be even be too much as sometimes too much help and slowdown a market economy.

There are always positives and negatives related to what the BOJ is doing, just like the US federal reserve. 

At this time Japan should be too concerned with its overall debt as it not like Greece in 2010. In 2010 most of the debt owed by Greece were to external borrowers will with Japan's debt it most the Bank of Japan and mostly internal.

Japan's economy seems to operate on a different level than other economies globally and as such its still a very stable economy the debt level has been there for decades and the economy has gone into bankruptcy and most likely won't.

Have a nice day and be safe!

Japan Job Availability:

 Article Source: https://mainichi.jp/english/articles/20221028/p2g/00m/0bu/022000c

Article:

TOKYO (Kyodo) -- Japan's job availability ratio improved for the ninth consecutive month in September as employers looked to hire in preparation for a rebound in inbound tourism sparked by the removal of the nation's pandemic-related daily arrival cap, government data showed Friday.

The job-to-applicant ratio rose 0.02 point from the previous month to 1.34, the Ministry of Health, Labor and Welfare said. The ratio means there were 134 job openings for every 100 job seekers.

Separate data from the Ministry of Internal Affairs and Communications showed Friday that the seasonally adjusted jobless rate in the reporting month rose 0.1 point to 2.6 percent from August, the first rise in four months.

Ideas:

While there are/were 134 job openings for every 100 workers, just what kinds of jobs are really out there right now. Are they full-time full benefit jobs or are they just contract jobs with no benefits, which is becoming more common in Japan.

A increase of 0.1 percent in the jobless rate is not really significant but it might indicate people are willing to now change jobs while there the pandemic they remained in their jobs.

And as Japan has opened up again to international tourism, hotels, restaurants, and other places that focus on international tourism are not trying to bring back the staff that either layed-off or voluntarily quit for better more stable jobs.

Article:

The increase in the unemployment rate reflects "people voluntarily leaving work for better working conditions. Another reason could be the abating coronavirus pandemic situation," an official at the internal ministry said at a briefing.

Japan's economy has been recovering from the COVID-19 pandemic, with antivirus curbs lifted by the government and the borders reopened to independent foreign tourists.

Prime Minister Fumio Kishida said last month his government would remove the cap on daily arrivals on Oct. 11 as part of its easing of COVID-19 border controls.

Ideas:

During the pandemic probably many people felt the need to just stay in their present jobs, as maybe companies were not hiring and they were just waiting for the pandemic to end before changing jobs. 

In Japan people probably don't change jobs as much as people in the US where job hopping is quite common. But as workers seek out better work/life benefits most likely companies see the trend and are now beginning to offer better work/life benefits and younger workers are not willing or don't want to have the same work life-style as their parents did. 

But just how many companies are willing to meet the needs of younger generation workers especially the more traditional Japanese companies. 

Article:

The number of job offers was up 0.9 percent, led by a solid rise in the accommodation and restaurant sectors. The number of job seekers declined 0.8 percent, according to the labor ministry.

The unemployment rate rose as the total number of unemployed people in September increased by 80,000, or 4.6 percent, from the previous month to 1.83 million on a seasonally adjusted basis, data from the internal ministry showed.

Among the 1.83 million, 730,000 people voluntarily left their jobs, up 5.8 percent from the previous month.

Ideas:

It's good that accomodation and restaurants jobs are beginning to return. But just what does the 0.8 percent decline on the number of job seekers really mean. Does it mean people think there are enough good jobs to apply for ore are more people satisfied with the job they have now. 

But at the time 80,000 more people were unemployed for whatever reason, such as quitting their present jobs to look for new jobs as they might see more jobs are now available that they are interested in.

What is not known exactly is which sector or sectors are losing the most jobs at this point.

An economy is very complex and every sector doesn't grow in linear manner as some see growth and some see periods of less growth. 

Have a nice day and be safe!

Japan Electricity Plan Cuts:

 Article Source: https://mainichi.jp/english/articles/20221026/p2g/00m/0na/037000c

Article:

TOKYO (Kyodo) -- Japan will cut household electricity bills by about 20 percent early next year as an inflation-relief step under a broader economic package that will entail nearly 30 trillion yen ($204 billion) in government spending, sources familiar with the matter said Wednesday.

The size of the package, which is scheduled to be unveiled Friday, will likely exceed 67 trillion yen, including spending by municipal governments and companies, the sources said.

The amount of government outlay was raised from 25.1 trillion yen planned earlier amid calls from ruling lawmakers, they said.

Ideas:

Electric companies might not be too happy with the situation unless of course they can get compensated for the revenue loss.

It's the same with the subsidy related to energy/oil companies. While consumers and other along the supply chain might be happy for the subsidy or the electricity bill cuts, but somewhere along the supply chain someone has to pay. 

And is 20 percent even enough with the continued inflation increase over the past year in Japan.

While it's good that the Japanese government is finally doing something after months of not much action related to inflation increases.

Article:

Higher energy prices are threatening to squeeze household budgets and the government is seeking to reduce utility bills, covering not just electricity but also gas.

The existing subsidies for oil wholesales to lower retail gasoline and kerosene prices will be extended beyond December, the sources added, though they will be offered at a reduced amount from June.

If these steps are implemented, an average household would see their expenditure on utilities and gasoline cut by 45,000 yen for the nine months to September.

Ideas:

Even at a 45,00 yen decrease in bills there are probably households that are still not so well off as inflation has continued to increase over the months in 2022. 

After the essential bills are paid there probably isn't much left for anything else and as a result consumer spending in the Japanese economy is not going to look too good for 2022.

Consumer spending has always been a challenge for the Bank of Japan in contrast to other countries where consumer spending is around 60 percent of GDP while in Japan its around 50 percent at best.

Article:

The government plans to tap tax revenue to fund the package, though most funds would have to be secured by issuing government bonds, the sources added.

To put a limit on spending, it plans to phase out support for utility bills in September next year, as fiscal restoration is a daunting challenge for Japan whose fiscal health is already the worst among major economies.

Based on the new package, the government plans to submit a draft extra budget for the current fiscal year to next March to parliament.

Ideas:

Government bonds might be the best strategy as any tax increase related to households is probably not going to be met with enthusiasm as the 2014 and 2019 tax increases showed.

It must be remembered that Japan is not Greece and are two different situations. The debt Greece had/has was mostly external while the debt Japan has is mostly internal debt related most to government bonds.

To be fair and honest government always try to limit spending but it never works and they continue to spend as needed. 

Most likely the Japanese government will increase the sales tax like they did in 2014 and 2019 to reduce the deficit.

Article:

Prime Minister Fumio Kishida is scrambling to reverse a recent slump in support ratings by extending additional support to households and companies. Core consumer inflation in Japan is at its highest level in some three decades amid higher fuel costs caused by Russia's war in Ukraine and the yen's rapid deprecation, which has inflated import prices.

One major pillar of the package is lowering household electricity bills by 7 yen per kilowatt-hour, meaning that an average household would save around 2,800 yen a month. Companies will receive support of 3.5 yen per kilowatt-hour.

In addition, an average household is expected to save about 900 yen in monthly city gas service charges, with the government providing support of 30 yen per cubic meter of consumption.

Ideas:

It seems most Prime Ministers recently don't have much support as even Suga didn't have much support. 

It seems like a savings of 2,800 yen is very much or around US 28 dollars. While the government can't do everything as it can't interfere in the market economy too much, but like during the pandemic in this case more could help families in need.

Even at 3.5 kilowatt-hour might not be enough to help companies and their energy needs. 

But again a government can only do so much before it interferes in the economy too much.

Article:

Kishida has instructed officials to focus on steps to ease the pain of accelerating inflation and address yen weakness, spur wage growth and rejuvenate the economy.

The package will also include handing out 100,000 yen per mother expecting a child as the population is rapidly aging, and promoting the domestic production of grain, fertilizers and livestock feed by extending support, the sources said.

Ideas:

The yen's weakness seems to be the major challenge at the present time, and the Bank of Japan is been intervening in the markets to bring it under control but will modest success.

The biggest challenge is wage growth as major companies don't seem to be interested and or just don't have any room as their profit margins are just too razor thin because of the continued increase in energy and material costs.

I doubt that a 100,00 yen per mother is going to help in rapidly aging situation as there are just too many structural problems related to raising families in Japan. 

Japan needs to find ways to reduce its dependence on external food sources but how long will it take for Japan to reduce significantly the need for external food sources, if it can even be done at all.

Have a nice day and be safe!

Japan Economic View:

 Article Source: https://mainichi.jp/english/articles/20221025/p2g/00m/0bu/015000c

Article:

TOKYO (Kyodo) -- Japan on Tuesday maintained the view that its economy is recovering moderately, supported by a resurgence of demand following the lifting of anti-coronavirus curbs, but it remained vigilant against volatility in financial markets after the yen's rapid depreciation.

The Cabinet Office retained the economic view for the fourth straight month in its report. It was more optimistic about business investment but downgraded its view on imports due mainly to slowing inbound shipments from Asia.

The views on other major components of the economy, including private consumption and exports, remained the same.

Ideas:

The economy might be improving but it might not be in every sector in the economy as there are probably many sectors that haven't reached the pre-pandemic level just yet.

The depreciation of the yen is of course the major challenge that the Japanese government has to figure out as its difference between the yen and the US dollar is still too far apart. 

In the meantime, imports will continue to be higher than normal and businesses and the average consumer will have to pay more because of it.

Article:

"The Japanese economy is picking up moderately," the Cabinet Office said in the October report. "Full attention should be given to price increases, supply-side constraints and fluctuations in the financial and capital markets."

The reference to movements in financial markets was reinstated in the September report, after Japan intervened in the currency market by buying the yen with U.S. dollars.

The yen's depreciation to its lowest levels in decades against the U.S. dollar is partly to blame for accelerating inflation that has prompted the government to compile a fresh economic package.

Ideas:

The term moderately might be a cautious approach as they don't want to say significantly picking up just yet as there are too many sectors still not what they should be.

Price increases most likely are going to continue but maybe not as much in other countries. 

Supply side challenges most likely will continue as the chip shortage is still a problem along with companies unable to meet its supply demands, including prices increases, as the continued challenges facing companies.

The capital markets will be a challenges as long as their significant difference between the yen and the dollar. 

Article:

After core consumer inflation jumped 3.0 percent in September from a year earlier, a 31-year high excluding the special effects of sales tax hikes, the October report said consumer prices are "rising."

The brighter view on corporate spending, which the report said is "picking up," comes as many Japanese companies plan to ramp up investment to boost output capacity and promote digitalization and decarbonization beyond the COVID-19 era. The upward revision was the first since February.

Private consumption, another key component of the economy, has been recovering moderately, the report said. The lifting of antivirus curbs has led more people to dine out and go on trips, in a much-awaited boost to the services sector that was pounded by COVID-19.

Ideas:

Core consumer inflation in Japan is nowhere near what it is in the US for the EU. as most likely companies, some or many are still reluctant to pass-on their increased costs the next in the supply chain including the final consumer.

What this means of course is that many or most companies profits margins are shrinking including the ability to maybe increase the wages of its employees.

Private consumption might be increasing due to latent or bent-up spending as consumers are just beginning to spend again, but how long will it take for most or many service sectors businesses to get back to their pre-pandemic levels.

Article:

Monetary tightening in major advanced economies, excluding Japan, has raised recession fears but the October report left its view on the global economy unchanged, saying that it continues to recover.

China reported Monday a 3.9 percent expansion in its gross domestic product for the three months to September, but uncertainty remains over whether the Asian powerhouse can achieve its annual target of around 5.5 percent for 2022.

The GDP data was not taken into account in Japan's latest economic report, a government official said.

Ideas:

Most likely Japan will continue to be in a recession-like situation for sometime but not a real recession.

As the main challenges will be the yen which increases inflation even more and the fact that many companies are still not increasing wages for its employees, which is very much needed to get consumer spending back to a significant level again.

Even though tourism is returning to Japan it might take some time for tourism sectors businesses reach the pre-pandemic like in 2019 when 32 million tourists visited Japan.

Of course most or many of those tourists were from China which has yet to fully open up and let their citizens to travel freely.

Have nice day and be safe!