Watch the highlights of AMRO’s 2023 Annual Consultation Report on Japan.
Following a strong recovery of 1.9% in 2023, Japan’s economy is forecast to grow at a steady pace of 1.1% in 2024. Despite high inflation, private consumption remains resilient. Exports have surprised on the upside amid global headwinds. With a robust recovery, fiscal consolidation should resume after the large stimulus spendings during the COVID-19 pandemic period.
However, Japan continues to contend with near-term external risks such as potential spikes in global commodity prices and sharper slowdown in other major economies while tackling persistent inflation.