Like its population, activity in Japan is contracting

By Régis Arnaud

Published ,

Japanese Prime Minister Fumio Kishida during a visit to Manila on November 3. AARON FAVILA/AFP

DECRYPTION – To respond to the slowdown, the government of Fumio Kishida has released yet another public recovery plan with a face amount of 17,000 billion yen, or 104 billion euros.


New cold spell on the Japanese economy. The GDP of the Archipelago fell in the third quarter, by 2.1% at an annualized rate (after growth of 4.8% in the previous quarter). A poor performance much higher than what economists had anticipated. “All indicators are falling, and investment spending is disappointing», Summarizes, sharply, John Vail, strategist for Nikko et Management.

This weaknessreflects the decline in private demand and exports», agrees Harumi Taguchi, chief economist for S&P Global Market Intelligence. Consumption in particular has declined for two quarters in a row, especially when it comes to durable and semi-durable goods, notes the economist.

How could it be otherwise? This is constantly constrained by an aging population, ever fewer in number and more limited in its needs. In 2022, it will melt by 538,000 souls, or 1,479 people per day. It will fall again this year. Even in the heart…

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