Japan’s economy will probably shrink for the first time for two years

Japan’s economy will probably shrink for the first time for two years

It’s expected that in the first quarter the Japanese economy will slump for the first time for two years due to poor private consumption as well as a milder export demand, the Reuters survey disclosed on Friday.

Negative reading, albeit quite insignificant, would mean the end of Japan's longest period of economic expansion – up to eight straight quarters of surge - since the bubble of the 1980s.

However, market experts told that the expected weakness in January-March could only be a temporary mild phenomenon, arguing that higher prices for fresh vegetables along with bad winter weather probably affected consumer spending in the first quarter.

The global economy is still firm, suggesting that Japan will restore momentum in the second quarter, as financial analysts pointed out.

According to a poll of 18 market experts, the gross domestic product headed south 0.2% in the first quarter after a 1.6% surge in the last quarter of the previous year.

It’s going to be the first reduction in the world's number three economy since the end of 2015.

The reduction on an annualized basis is going to provoke a zero reading for the previous quarter.

Market experts added that the Japanese economy has been reviving steadily, but it feels like it has temporarily stopped.

Economic indicators, including factory production and business sentiments of firms, have demonstrated a softening of economic dynamics. Apparently, data on GDP clearly reflects these phenomena.

Market experts are assured that this quarter there was no surge in private consumption, after it tacked on by 0.5% in the last quarter of the previous year. By the way, private consumption accounts for approximately 60% of GDP.

Additionally, the survey disclosed that external demand also didn’t contribute to this Asian country’s GDP.



Big Tech Stocks and Crypto Surged
Big Tech Stocks and Crypto Surged

Cathie Wood’s Ark Invest filed for the creation of a Bitcoin ETF. Apple and Amazon jumped and airlines and cruise operators dropped as the reflation trade waned.

Latest news

Weak USD, Gold and China's Stocks Recover
Weak USD, Gold and China's Stocks Recover

The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera