Japan Economy: Updated June 29, 2026.

Japan economy may tie 73-month postwar growth record in June.

Ideas

The Japanese economy is a very mature economy which means it doesn't grow like it did in the 60's, 70's or even the 80's as even a small GDP growth improvement is most likely all that Japan can expect.

But even if its true that there have been 73 consecutive months of growth the amount of growth might be minimal at best as the Japanese economy just doesn't grow that fast any more.

It should be noted, even though growth is minimal, there is still a lot of economic activity in Japan as it takes more and more resources, economic activity, to get a mature economy to grow even a little which Japan surprisingly has been able to to do lately.

Yes, state subsidies are good and needed but of course its increasing the already bloated Japanese government debt but maybe it can't be helped as subsidies are needed to help ordinary Japanese households deal with the continued inflation in Japan.

Whether the postwar record for economic expansion is real or not its still very noteworthy as Japan just continues on despite having a few decades before of supposed stagnation and even its only minimal economic expansion is seen as moving the economy forward.

Japan doesn't want to go back to a period of stagnation or even de-flation as both situations are not good for Japanese households or even the Japanese economy. Even though some might have liked de-flation, it was not good as wages didn't increase, consumer spending was less than good and the overall  economy was just sitting and not doing much at all.

As everyone knows by now the agreement was really not that much of an agreement as the situation really hasn't improved that much as Japan and other countries are still not sure what is going to happen next in the region, which means supply lines and shipping is still going to be in a situation of wait a see.

Yes, Japan might actually see positive growth through July which means, despite all of its weaknesses, it's still a very reliable and stable economy.

Not too long ago the Japanese economy had a habit of expanding one quarter and then decreasing another quarter as the economy just wasn't sure what it wanted to really do.

But it seems the Japanese economy has finally been able to move past the up and down from the up and down situation to sustainable growth for at least the time being.

And yes, maybe, finally, consumer spending or personal consumption has finally been enough to actually have an affect on GDP growth as robust wage hikes might have actually kicked in to the point wage earners feel good about spending again in the Japanese economy.

And, as there is a supposed labor-shortage in Japan, corporate investment is moving forward with labor-saving measures and digitization, which Japan, for the most part, is way behind other advanced economies in.

And yes, Japan exports, have recovered as maybe demand for Japanese cars as US consumers have become accustomed to the higher prices of Japanese cars and begun to buy more cars again despite the possible of the tariff situation and price increases.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260623/p2g/00m/0bu/034000c

Japan Dec. Economic View: Updated Dec. 21, 2024.

 

Japan retains economic view in December, warns of moderate firm profits

Article Source:  https://mainichi.jp/english/articles/20241220/p2g/00m/0bu/036000c

Ideas:

The Japanese government wants to be very careful about what is say as it doesn't want to upset the financial markets in Japan or globally, so they continue to say recovering at a moderate pace.

An economy is very complex as there are many parts or sectors to an economy and the sectors are never growing or not growing at the same pace.

And yes, the weak Japan yen increases the price of imports such as parts and supplies that Japanese companies need from overseas suppliers.

And then there is increased labor costs, as most companies have had to increase wages just to keep or recruit workers as there is a labor shortage in Japan, which means workers potentially have a choice for jobs.

It is no surprise that corporate profits are not where they are expected to be because of the weak Japanese yen and the need to increase wages which both reduce a company's profit margins.

The challenge is small and midsize companies which don't have the same financial resources that large name-brand companies do, so their profit margins are even thinner and some might not have been able to increase wages as they couldn't afford wage increases.

Again, large Japanese companies might be seeing their corporate earning steady but not growing significantly too because of the weak Japanese yen, and increased labor costs.

Its quite possible the Bank of Japan prefers a weak Japanese yen, as long as it stays within a range that the BOJ feels is acceptable.

Anytime the Japanese yen begins to grow stronger against the US dollar Japanese export companies loose millions of dollars as the weak yen is favorable to them.

At the same time, the BOJ is aware that the weak Japanese yen is not good for the domestic economy as it increases imports prices which hurts Japanese import companies.

From 142 to 156 is significant difference that can help many Japanese export companies but also hurt many Japanese import companies too. 

Japan is a resource poor country so it has to import much of what it needs and its also a major exporting country and the Japanese currency is watched a lot by both groups as to how it can affect their companies.

Small and midsize Japanese companies have been having significant challenges recently related to the weak Japanese yen, the increase in material costs, and having to increase wages for their workers to either keep them or attract new workers.

The US economy seems to be the most stable and reliable economy in the work at this time, but there are challenges with the Chinese economy as they are going through a transition period and who knows when it will turn around.

The EU, as usual, is stuck or stagnant and who knows when it finally going to get moving again.

South Korea, has been having is own domestic challenges and its economy is stuck in the advanced economy syndrome of not growing that much these days.

Have a nice day!