Experts are divided on the future outlook for the Japanese economy.
This time, I would like to tentatively introduce one of them, analysis and insights.
Real GDP in the October-December period of last year grew at an annualized rate of 5.4% (+1.3% year-on-year), the first positive growth in two quarters.
It can be confirmed that the economy had temporarily picked up toward the end of last year.
Following the lifting of the declaration of the Covid-19 pandemic emergency, service consumption increased substantially.
In addition, the pickup in automobile production due to the easing of parts shortages also contributed to the boost in real GDP.
However, since the beginning of this year, the downward pressure on the economy has intensified due to the outbreak of the Omicron strain and the resulting application of priority measures to prevent its spread.
As the mood of self-restraint reappears, a downturn in service consumption in the January-March period is inevitable.
In addition, some companies have been forced to temporarily suspend operations at their factories due to an increase in the number of infected people and those in close contact with them.
At present, the number of newly infected people is showing signs of peaking out, and manufacturing production is expected to recover as supply constraints ease.
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