Japan Economist, Japan Macro Advisors

Takuji Okubo

Japan Economist

Concise and Insightful Analysis on Japan Economy

Japan Macro Advisors

Our mission is to provide a concise and timely analysis on the Japanese economy for the benefit of global audiences. Communication, especially in foreign languages, has always been a weakness for the Japanese, which was fine when Japan's economic might attracted foreign media and various other institutions to study and report on Japan - such days are long gone. In the last two decades, we saw foreign institutions reallocating their resources from Japan to other more exciting parts of the world. As a result, when we read reporting on Japan in foreign media, we sense a subtle but noticeable decline in the depth of understanding what is actually happening in Japan.

Macroeconomics

According to Cabinet Office, the Japanese economy grew by 0.1% quarter on quarter (QoQ), or at an annualized rate of 0.5%. The headline number looks weak, but contents of the breakdown are less alarming as we explain below.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/044/547/original/jma_chart_png_undefined_0.png?1518580997" class="editor-image img-responsive" data-smartkarma-image-id="44547"></figure>Among domestic demands, both private consumption and private capital expenditure grew robustly in the quarter. Private consumption grew at the annualized rate of 1.9%, and private capital expenditure by 2.8%.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/044/561/original/jma_chart_png_undefined_0%20%286%29.png?1518589623" class="editor-image img-responsive" data-smartkarma-image-id="44561"></figure>What pulled the overall growth down was a surge in imports. Imports…

According to Cabinet Office, the Japanese economy grew by 0.1% quarter on quarter (QoQ), or at an annualized rate of 0.5%. The headline number looks weak, but contents of the breakdown are less alarming as we explain below.Among domestic demands, both private consumption and private capital expenditure grew robustly in the quarter. Private consumption grew at the annualized rate of 1.9%, and private capital expenditure by 2.8%.What pulled the overall growth down was a surge in imports. Imports…

Japan: Weak GDP Headline Hides Healthier Growth