Open figure viewer
Significance
Foreign trade accounted for almost the entire increase, more than making up for declines in household consumption and government spending.
Impacts
The government will claim credit for growth, but voters will see this as theoretical unless incomes rise faster.
Strong GDP growth will make it hard to argue against raising the sales tax as scheduled in 2019.
Economic growth and a shrinking labour force will force employers to raise compensation eventually.
Japan is vulnerable externally if oil prices rise further or the Fed hikes rates too fast.
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2017
You do not currently have access to this content.
