03
Dec
Sharp economic slowdown in Japan in Q3
Anaemic GDP growth of +0.1% in Q3. Consumption slows. Exports contract. BOJ in holding pattern pending a government stimulus plan.
Key Points
- GDP growth in Japan ground to a halt in Q3 (+0.1%)
- Exports fell further, but the trade balance is once again showing a surplus
- Industrial output dipped again at year-end after showing some signs of improving
- Leading indicators still lacklustre
- Consumption slows in spite of improving household confidence
- BOJ’s flexibility is much reduced
- Yen will continue to weaken in 2020
- Earnings of Nikkei companies fell for the third quarter in a row
- Neutral positioning with regards to Japanese equities
