Published Feb 13, 2018 08:04PM ET
Updated Feb 13, 2018 08:31PM ET
Japan’s Economy Loses Speed, Misses Forecasts in 4th Quarter
(Bloomberg) -- Japan’s economy expanded for an eighth quarter, but the pace of growth fell sharply and missed expectations. Slower growth ahead, particularly with a stronger yen, weakens inflationary pressure and underscores the likelihood of continued stimulus from the central bank.
Highlights of GDP report |
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Key Takeaways
Japan’s economy had cruised along at well above its potential growth rate in recent quarters, fueling growing confidence that an ever-tighter labor market and record corporate profits would generate stronger consumer spending and inflation. While private consumption and business investment have improved, wage gains remain sluggish and inflation is still well below target. Economy Minister Toshimitsu Motegi said the run of growth is the longest in 28 years and is the beginning of a positive economic cycle.
Economist Views
What Our Economist Says... |
The slowdown in Japan’s growth to less than potential in 4Q could take some of the wind out of inflation near term. Looking at the details though, the economy looks fairly healthy after two years of uninterrupted expansion. ... Risks to the outlook of course abound. U.S. protectionism would damage exports. More urgently, the recent surge in the yen is bad news for Japan’s exporters. Yuki Masujima, Bloomberg Economics |
Other Details
(Adds details, economists’ comments.)
Written By: Bloomberg
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