Covid-19 cases around the world are becoming more and more alarming with the spread of a new variant of Covid-19, the Delta. In Japan, however, attention to the spread of Covid-19 is still in focus with the distribution of the vaccine intensified. However, market players still have question marks about Japan’s economic prospects.
Today the Japanese administration has provided enlightenment on the development of the Japanese economy. According to the government, the Japanese economy is expected to recover to pre-pandemic levels by the end of this year which will be driven by strong exports as well as an increase in consumer spending.
In a mid-year survey, the Japanese administration predicted that during the fiscal year to the end of March, the economy would grow 3.7% and GDP would reach 547 trillion yen ($ 4.9 trillion), a figure achieved during October-December 2019.
Economists noted that Japan’s economic recovery will moderate in the first half of this year but will grow rapidly in the second half of the year due to an increase in exports and stable capital spending.
The forecast carries an indication that economic expansion is weaker than estimated last January which expects 4.0% growth for the year. Growth for the next fiscal year is expected to slow to 2.2% as export rates moderate. But strong domestic demand will push GDP to 558 trillion yen,
The Central Bank on Monday expressed the view that regional economic policymakers have so far preferred to postpone monetary or fiscal stimulus measures in the near future.
The growing number of infections has forced Japan to maintain a “quasi” state of emergency a few weeks before the Tokyo Olympics begin on July 23rd. The USD depreciated against the Yen by 0.29% as of 10.00 p.m.
