Look at the data and it is clear that the Japanese economy is showing signs of healthy growth in Q3 of annualised 1.4% in real terms.
We forecast 2017 GDP growth at 1.5% and 1.2% for 2018, which are above the economy's potential rate of growth of 1%. Business investment should gain momentum on the back of a historically high level of corporate earnings and a virtuous circle of robust exports, higher profits and capex. However, consumer expenditure is expected to be subdued with a growth rate of about 1%. Moving on from Japan's 'lost decade' Despite the tight labour market, the average wage per capita is falling because of a larger proportion of temporary workers and a government directive to reduce overtime ...
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