Japan GDP shrinks 0.2% in November, hit by inflation: JCER

[beijingwalker]

Japan GDP shrinks 0.2% in November, hit by inflation: JCER​

Household consumption fell 1.2%, the largest dip in 9 months

Shoppers in Japan are reining in spending due to inflation. © Reuters

Nikkei staff writersJanuary 11, 2023 21:00 JST

TOKYO -- Japan's gross domestic product shrank 0.2% in November on a month-on-month seasonally adjusted basis, as inflation hits private spending, the Japan Center for Economic Research said on Wednesday.

However, if December GDP grew at the October-November average rate, Japan's economy would have expanded by 2.9% in real terms in the final quarter, compared with the September period, the JCER said.

The main drag on topline growth in November was household consumption, which fell by 1.2% from the previous month, the biggest margin since February last year. The think tank said contractions in personal spending were observed in all three categories -- durables and semi-durables, non-durables, and services, indicating that households were reining in spending amid rising inflation.

Corporate capital investment, another pillar of domestic demand, also shrank 0.8% month-on-month in November. Capital goods shipments, an indicator of the level of investment, fell in several categories of machineries. Housing investment also dropped by 0.5% from October.

Reflecting sluggish consumer demand, goods and services imports in real terms declined 2.9% in the month from October. Goods imports dropped 3.5%. Exports, on the other hand, remained flat with a 5.4% expansion in shipments to the European Union but a 3.5% decline to China.

Japan GDP shrinks 0.2% in November, hit by inflation: JCER

Household consumption fell 1.2%, the largest dip in 9 months

asia.nikkei.com

 

[REhorror]

Hmm, we have to thank the germans for banning russian gas, else they would surpass Japan at this point.
I expect Germany to surpass Japan when Japan puts their tomahawks though, that would really cut a lot of China market.

 

[beijingwalker]

Hmm, we have to thank the germans for banning russian gas, else they would surpass Japan at this point.
I expect Germany to surpass Japan when Japan puts their tomahawks though, that would really cut a lot of China market.

The October 2022 economic forecast of the International Monetary Fund (IMF) shows that Japan's nominal GDP in 2022 will be US$4.301 trillion, and Germany's will be US$4.130 trillion. At present, there is still a 6.7% gap.

 

[REhorror]

The October 2022 economic forecast of the International Monetary Fund (IMF) shows that Japan's nominal GDP in 2022 will be US$4.301 trillion, and Germany's will be US$4.130 trillion. At present, there is still a 6.7% gap.

Japan makes huge banks in China though.

If China cuts Japan, Japan would be surpassed by Germany easily.

 

[Beny Karachun]

Japan's problem is its aging and dwindling population, China and other low birth rate countries will face the same problem in the near future.

Inflation is actually good for Japan, a nation that suffered from deflation not so long ago. Deflation is a death spiral for a country.

 

[Indos]

Japan's problem is its aging and dwindling population, China and other low birth rate countries will face the same problem in the near future.

Inflation is actually good for Japan, a nation that suffered from deflation not so long ago. Deflation is a death spiral for a country.

Inflation currently happening in Japan is not derived from demand growth, but rather supply side and due to energy cost and commodities imported from other countries. This kind of inflation cannot be considered as good thing.

 

[Beny Karachun]

Inflation currently happening in Japan is not derived from demand growth, but rather supply side and due to energy cost and commodities imported from other countries. This kind of inflation cannot be considered as good thing.

Inflation in Japan Should Be Cheered, Not Feared

If the current bout of inflation can break Japan’s deflationary mindset, Japanese equities could present a rare and valuable opportunity for those seeking to navigate global inflationary pressures.

www.gmo.com

I suggest reading that.

Consider the inflation bad, it's still better than deflation.