The government downgraded their assessment of the Japanese economy do to slower exports to China. This is the first time the economy's outlook has been downgraded since March of 2016. Consumption and capital expenditures make up 70% of GDP according to government officials. Their most recent growth phase, the Izanami Boom, may have been surpassed by the most recent boom from 2012 to now. A seven-member panel of private-sector and academics are responsible for determining the length of economic cycle, and their process takes longer than a year. They claim exports have had a "weak tone" but private consumption is increasing.
https://www.japantimes.co.jp/news/2019/03/20/business/economy-business/government-downgrades-view-japanese-economy-first-time-three-years-amid-china-slowdown/#.XJhJYChKg2w
2 comments:
It will be interesting over the next couple years to observe the Japanese and Chinese economies. Japanese investment is increasing along with private consumption, which are positive signs. However, it is a concern that exports are decreasing. This could have an affect on other nations who perform transactions with these countries.
The trade war between the US and China is definitely going to impact the countries that trade frequently with both countries. China itself is having a rather hard time with all the debts, and is trying to gain more economic power by striking a better deal, or overall a stronger value of their currency. South Korea would definitely be affected by what will happen next, as we also rely a lot on export. Hopefully things don't lead to any major economic crisis.
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