Japan’s Economy Could Lag Behind in Growth

Japan’s economy has been on a strong run, but some experts are warning it may get left behind by other countries this year.
The world’s third largest economy expanded for the eighth quarter in a row at the end of last year, according to data published Wednesday. That marked its longest uninterrupted streak of growth since the booming days of the 1980s.

The economy has been lifted by years of massive stimulus by the Bank of Japan that aimed to get businesses and consumers spending again after a prolonged period of stagnation and falling prices.

But at the start of the year when much of the global economy is expected to continue enjoying a broad upswing, Japan may lag behind.

“We think that that the economy won’t expand as strongly this year as it did in 2017,” said Marcel Thieliant, senior Japan economist at research firm Capital Economics.

There are already warning signs. In the fourth quarter, growth slowed to 0.5%, significantly below analysts’ expectations.

Japan’s economy grew about 1.6% in 2017, according to preliminary estimates. Thieliant expects that to fade to 1.2% this year.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza