The three trends driving the future of Japan's economy

Three macro trends should shape the Japanese economy over the next couple of years.

The first is the global recovery, which will obviously affect markets everywhere around the world. Then there are two trends that are quite Japan-specific. One is a shift from deflation to inflation. The other is improved governance, which is probably the most promising development for stockholders, not least because of strong government policy support.  It is against this backdrop that Japan's export volume is growing, although it will take some more time for confidence to rise in corporate Japan. Our forecasts are quite moderate through March 2018, largely reflecting a cyclical r...