The progress of the world's third-largest economy has been easy to miss in the age of President Trump and Brexit, but the context should not obscure the trend: Japan's generally mixed economic picture is improving, meriting the attention of investors.
Our base case calls for a 1% rise in Japan's GDP this year and next. If that growth rate sounds modest, it represents an acceleration over 2016 and a sea change from Japan's anaemic past. Could Japan strengthen thanks to Trump administration? We think growth risks are skewed to the upside despite stubbornly weak consumption trends, with bright spots such as net exports and housing investment. True, there are uncertainties about currency and trade issues with the Trump administration. But a modest fiscal stimulus and supportive monetary policy are positives we would emphasise. ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
