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 29.0 (Mar21)29.0 18.0
Broad Money Growth 2 8.0 (Feb21)8.0 8.1
Headline Inflation Rate 3 -0.4 (Feb21)-0.6 0.5
Industrial/ Manufacturing Production Growth Rate 3 -2.6 (Feb21)-5.2 -5.7
Merchandise Export Growth 3 -0.2 (Feb21)-0.2 12.0
Exchange Rate Index 4 94.2 (Mar21)91.3 93.3
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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