AEIR 2019/2020

Japan continued to recover in 2019 on strong domestic demand. The economy expanded 0.7% from 0.3% growth in 2018. While both private consumption and private investment contributed to declining growth in the second half of 2019, net exports provided a much-needed boost. In January 2020, machinery orders increased by 2.9% month-on-month. However, this positive start was disrupted by the COVID-19 outbreak, which initially led to a severe economic downturn in the People’s Republic of China, and the postponement of the 2020 Summer Olympics. Thus, growth is forecast to contract 1.5% in 2020 before returning to 0.9% growth in 2021 as the government adopts stimulus measures.

Source: Asian Development Outlook 2020, ADB
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 22.0 (Aug20)22.0 22.0
Broad Money Growth 2 6.3 (Jun20)6.3 6.3
Headline Inflation Rate 3 0.3 (Jul20)0.1 0.6
Industrial/ Manufacturing Production Growth Rate 3 -16.1 (Jul20)-18.2 0.8
Merchandise Export Growth 3 -18.0 (Jul20)-18.0 -25.8
Exchange Rate Index 4 91.9 (Aug20)92.5 92.0
1 Monthly average, local index.
2 %.
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
Source: Bloomberg LP; CEIC database; Ministry of Economy, Trade and Industry; Ministry of Finance.

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