The third quarter of the year marks the slowest growth in Japan all year of a mere 0.2%, way below the expected growth of 0.8%. Although total growth was calculated to be 1.8%, 1.2% was subtracted after accounting for inventories. One of the major factors for this decline is due to a consumption tax implemented by the government in October, however, this slowdown is expected to affect the last quarter's growth too. During the Economic Outlook Conference, a student raised a question about the effect of US-China trade war on Japan, hurting the Japanese electronics, automobile and chemical industry. Paired with the consumption tax, the political background is only decreasing consumer and investor confidence in the economy resulting in even more of a slowdown. However, the Tokyo Olympics are just around the corner which is sure to give the economy a little boost.
https://www.ft.com/content/f2075cf4-0672-11ea-a984-fbbacad9e7dd
I'm interested to see how much of a boost the 2020 Olympic games will have on the Economy, seeing as a lot of money can go into the Olympics but after the Olympics are done much of the Private investment will decay and cease to exist like it did in Rio in 2016. Also interested to see how Japan-U.S relations will develop maybe for the better or worse.
ReplyDeleteIt will be interesting to see the impact the trade war has on smartphone prices here in the US because Japan is such a large supplier
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