The last decade saw an acceleration in Japanese companies shifting their business model further from export-oriented domestic production toward foreign direct investment or FDI-driven overseas production.
For many investors, the market turmoil triggered by the COVID pandemic in March was one of the worst in their lifetime. A crash in the US stock market, a sharp plunge in US Treasuries, and a massive selloff across the globe had played havoc with market confidence. The global financial markets only started to stabilize after major central banks, including the Bank of Japan, led global efforts in unveiling their asset purchase programs and lending facilities of unprecedented scale. Like many other investors, portfolio managers of the Japanese life insurers were left with a bittersweet moment.
Shrinking demand for loans, an aging population, and a prolonged low-interest-rate environment have hit the profitability of Japan’s regional banks over the last few years.
The COVID-19 pandemic has put economies around the globe under one of the most severe stress tests, and Japan is not immune.
After being postponed in 2015 and 2017, Japan’s consumption tax was finally raised from eight to ten percent in October 2019. Most food items are exempted.
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In addition to an assessment of recent economic developments, the 2019 Annual Consultation Report on Japan covers key issues related to the Japanese economy, including Japan’s new fiscal stimulus package and the country’s recent consumption tax hike.
Despite continued weakness in exports amid a global slowdown, the Japanese economy has remained resilient, underpinned by sustained domestic demand, according to the 2019 Annual Consultation Report on Japan published by the ASEAN+3 Macroeconomic Research Office (AMRO) today.
The Japanese economy has remained resilient, supported by domestic demand, despite a continued weakness in exports amid a global slowdown.
As one of the most aged societies in the world with a shrinking labor force, Japan has been struggling to meet the demand for more workers. Last year, the government took the unprecedented measure to open the door for more foreign workers in order to mitigate the labor shortages in the economy.
