AEIR 2021

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 28.0 (Jan21)26.0 23.0
Broad Money Growth 2 7.3 (Nov20)7.3 7.6
Headline Inflation Rate 3 -1.2 (Dec20)-1.0 0.8
Industrial/ Manufacturing Production Growth Rate 3 -3.2 (Dec20)-3.9 -3.7
Merchandise Export Growth 3 7.2 (Dec20)7.2 -0.1
Exchange Rate Index 4 89.9 (Jan21)89.9 94.7
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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