Japan / Growth

Japan: 5 challenges in the second half

Ma Tie Ying / August 13, 2019
A series of challenges lie ahead in 2H19: 1) consumption tax hike, 2) Japan-South Korea trade tensions, 3) China-US trade war, 4) threat of the US’s automobile tariffs, 5) yen appreciation.
Key summary points
  • The economy grew faster than expected by 2.3% QoQ saar (1.1% YoY) in 1H19
  • But a series of challenges lie ahead in 2H19
  • We maintain the 2019 GDP growth forecast at 0.7%
  • Inflation forecast is lowered to 0.8% for 2019 and to 1.3% for 2020
  • The chances of BOJ easing in 2H19 are on the rise

Japan: 5 challenges in the second half

Photo credit: AFP Photo

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