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 (Feb21)28.0 23.0
Broad Money Growth 2 7.6 (Dec20)7.6 7.2
Headline Inflation Rate 3 -0.6 (Jan21)-1.2 0.7
Industrial/ Manufacturing Production Growth Rate 3 -5.4 (Jan21)-2.6 -2.4
Merchandise Export Growth 3 12.0 (Jan21)12.0 7.2
Exchange Rate Index 4 91.3 (Feb21)91.3 89.9
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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