Increased Government Spending, Subsidy Support to Households and Businesses, and Loose Monetary Policies to Support Medium-Term Growth
Following years of subdued growth, the Japanese economy registered a good rebound in 2021, with a real GDP growth of 2.1%. The country’s reopening and the consequent boost to household consumption and consumer spending were key growth drivers of 2022’s estimated 1.1% growth. However, soaring energy and food prices have weighed on Japan’s fiscal health as the government absorbed the price shocks through subsidy support. A $200 billion fiscal support package has also been announced with the aim of driving demand and investment momentum in 2023.
Against the backdrop of slowing global growth forecasts in 2023, how will the export-driven Japanese economy fare in 2023 and beyond? Can increased fiscal spending, ultra-loose monetary policy, and a conducive business environment support the medium-term growth momentum of Japan’s economy, even under the weight of an ageing population and a shrinking labor force?
This Japan-centric macroeconomic thought leadership provides a growth snapshot of the country through the identification of growth conditions. A key feature of this piece is the focus on Japan’s social scenario and how businesses can leverage long-term trends and policy reforms to drive sustainable investment opportunities in various industries. This piece also covers crucial macroeconomic sections that will provide an in-depth analysis of the country’s social outlook and global positioning.
Key Issues Addressed
- What is Japan’s GDP growth outlook over the next 5 years?
- How will Japan’s ageing demographics impact medium- and long-term growth patterns?
- How will Japan’s population structure evolve over the next 5 years?
- How will Japan's ultra-loose monetary policy stance impact long-term growth prospects?
- How does Japan fare on global innovation and competitiveness indices compared to other regional economies?
Table of Contents
1. Strategic Imperatives
- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8™
- The Impact of the Top 3 Strategic Imperatives on Japan’s Economy
- Growth Opportunities Fuel the Growth Pipeline Engine™
2. Macroeconomic Environment
- Key Economic Metrics
- Growth Drivers
- Growth Restraint
3. Economic Outlook
- GDP Growth
- Inflation and Monetary Policy
- Fiscal Analysis
- Trade Analysis
4. Global Positioning
- Impact of Global Economic Trends and Events
- Global Performance Indices
5. Social Outlook
- Population Structure
- Population Size and Density
- Disease Profile - Communicable Diseases
- Disease Profile - Non-communicable Diseases (NCDs)
- Health Insurance and Out-of-pocket Expenditure
- Health Facilities and Inpatient Beds
6. Growth Opportunity Universe
- Growth Opportunity 1 - Loose Monetary Policy and High Saving Rates Spurring Growth in the Consumer Goods Sector
- Growth Opportunity 2 - Aging Demographics Fostering Healthcare Investment
- Growth Opportunity 3 - Increased Defense Spending Will Support Manufacturing Growth
7. List of Exhibits
