Japan's Economy on the Rebound

End of Deflation and Return of Growth

Japan's economy is expected to see a significant upturn in 2024, with the end of deflation and the return of economic growth. The economy is reaching an inflection point, with real GDP growth anticipated to recover.

Positive Indicators

Despite the challenges of the pandemic and energy crisis, Japan has navigated these issues effectively. The economy is projected to continue growing above its potential, driven by overseas economic activity and prices. The rate of increase in the Consumer Price Index (CPI) is also likely to remain in the range of 25-30% for fiscal 2024, indicating a stable inflation environment.

Economic Outlook

In light of the recent GDP results, economic forecasts have been revised upward. The Bank of Japan (BOJ) expects the economy to expand by 1.9% in fiscal 2024, driven by strong domestic demand and exports. The International Monetary Fund (IMF) also projects a positive growth outlook, forecasting growth of 2.1% for the year.