Author: Yoshiaki Nohara

Japan’s economy is facing challenges in the first quarter of 2024, with disruptions at car manufacturers leading to a projected contraction. Economists predict a 1.2% annualized decline in GDP, attributing the slowdown to decreases in consumer and corporate spending, as well as negative impacts on net exports. Yoshiki Shinke, a respected economist at Dai-Ichi Life Research Institute, believes the data will reveal a stagnant economy due to a significant decrease in auto production following a certification scandal at Daihatsu. This contraction raises concerns about the country’s growth prospects moving forward. As Japan navigates these economic challenges, the central bank must…

Despite government subsidies and efforts to cap costs, Japan’s households reduced their spending in March due to sticky inflation. Real outlays decreased by 1.2% compared to the previous year, marking the 13th consecutive month of decline. However, this was better than economists’ forecast of a 2.3% drop. Households have been tightening their budgets as pay increases fail to keep up with the rising cost of living. Real wages have fallen for the 24th straight month in March, while consumer inflation has remained above the Bank of Japan’s 2% target continuously. Policymakers are hopeful that historic wage hikes in the coming…