Japan’s economy expected to show sluggish growth in first quarter
The first estimate of Japan’s GDP for the first three months of 2018 will be released today.
Economists polled by Reuters suggest Japan’s economic growth has decreased by an annualised rate of 0.1% in the first quarter of 2018 after recording 1.6% growth in the final quarter of 2017. If – as the experts suggest – Japan’s GDP gives a negative reading, that will end eight years of GDP growth in Japan.
With an excess of 1.58 jobs per person in Japan, falling wages – which decreased by 0.15% in the 12 months leading to February – is the cause of this decline. Heavy snows in February also restricted household spending by keeping consumers inside and driving up vegetable prices.
Regardless, the experts insist that Japan’s declining GDP will make up for this loss in the coming months. To get back on track, Japan needs to increase its exports. With pressure from Trump on Abe to open up Japan’s agricultural markets, and Abe’s pressure on Trump to rejoin the Trans Pacific Partnership, expect to see more talks between the two states as they attempt to negotiate better trade deals.
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