• Japan’s Economy Worsening

Market Overview

14 May 2019

Japan’s Economy Worsening


According to one of the government’s main indicators, Japan’s economy is deteriorating for the first time in six years.

The index shows that economic conditions fell 0.9 percent from February to March, thus statisticians now claim that the economy is worsening rather than weakening. This is the bottom grade that is used to describe an economy. The last time such a grade was given to Japan’s economy was in 2013.

The reasons behind this downfall in the economy are the trade war between China and the U.S and a slowdown in Japan’s main export markets, according to the Financial Times.

Even though things are looking bad for the economy, the government still plans to increase the consumption tax from eight to ten percent.

On the upside, a number of analysts believe that the economy will not reach a recession because of the strength of domestic demand and the current unemployment rate of 2.5 percent.

Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

Maria Gregoriou
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