Japan Economy Forecast:

 Article Source: Deleted by mistake.

Ideas:

A 1.5 percent economic growth is probably all Japan can expect for now. Of course if the wage increased do happen in April 2023 it could be a major boost in the economy which hasn't happened in a very long time.

Consumer spending of course is only going to increase if consumers/workers have a significant wage increase that offset the inflation challenges.

But then again consumer spending has never been a strong part of the Japanese economy compared to the US. Consumer spending in the US is upwards of 60 percent of GDP while in Japan it might reach 50 percent at best.

Again even a 2.2 percent increase in consumer spending would be good as long as wages do increase in April 2023.

But the real trick is how much are they going to increase and will consumers feel good about the wage increases.

As usual what does a "new form of capitalism" really mean. It's a good idea to distribute the wealth appropriately in an age of income inequality but just how can it be achieved.

The consumer price index is just number but the real significant number is how many families are not doing too well because of inflation.

If wages do increase overall this could be the surge in the economy that Japan hasn't had in a very long time.

If in fiscal 2023 there is lower inflation that will be a boost for the economy and for households and consumers to either spend again and or save some.

After 3 years or so of the pandemic maybe companies now feel its time to start investing again.

And yes, it appears that the global economy doesn't appear to be headed for the expected recession and it will have limited effects on exports from Japan.

But its really too early to say as the challenges can change quickly and by end of the first quarter in 2023 it could be more of the same. 

Have a nice day and be safe!