The nominal GDP is flat for
this quarter due to the fall of 0.9% in private consumption. This is
consistent with our pessimistic outlook for the propect of Japan economy
due to actual issues.
Increase of taxes to correct by huge government budget deficit, poor
demographics. The positive comes from improvement of foreign demand due
to the low yen policy which is the only way out of the current crisis.
However the GDP deflator still negative at 0.7% shows the persistence of
mild deflation. We expect the current pattern of very slow growth to
continue. |