In the media | 08 Jun 2023
Nikkei Asia: Pay in Japan is finally rising, but this won’t boost growth much
Norihiro Yamaguchi
Lead Economist
“Rising wages in Japan look set to have a limited impact on inflation and, more importantly, on economic growth in the coming years, contrary to the hopes of Kishida and Abe.” – Norihiro Yamaguchi, Senior Economist, and Makoto Tsuchiya, Assistant Economist at Oxford Economics, share an op-ed for Nikkei Asia to discuss Japan’s higher wages and its impact on inflation and economic growth.
Read the op-ed below:
Pay in Japan is finally rising, but this won’t boost growth much
To download our latest reports for the Japan, please check Resource Hub – Oxford Economics.
Tags:
You may be interested in
Post
Japan’s worsening fiscal outlook raises risk of higher term premium
We expect Japan's fiscal outlook to deteriorate due to weak economic growth and pressure on the government to implement fiscal stimulus. We don't think deficit concerns drove the recent spike in ultra-long Japanese government bond (JGB) yields, but as domestic purchasers reduce their JGB holdings, long-term yields could become more sensitive to fiscal developments in the coming quarters, raising the risk of a higher term premium.
Find Out More
Post
Identifying future manufacturing hot spots in Japan
Japan's industries, which are exposed more to international demand than to tepid domestic demand, are often concentrated in certain cities. This makes these cities more dynamic than others, a feature masked when only looking at national data. Understanding the industrial landscape helps identify growth opportunities across various sectors, as job creation and incomes drive spending.
Find Out More
Post
Tariff turbulence will diminish the BoJ’s chance of rate hike
The Bank of Japan kept its policy rate at 0.5% at Thursday's meeting. Considering the significant downgrading of growth and inflation forecasts in its Quarterly Outlook Report, the central bank will likely take a long pause to assess the impact of high global trade policy uncertainty on growth and inflation.
Find Out More