Japan pent-up demand is driving a capex recovery – for now
The post-pandemic recovery in business investment in Japan is lagging other GDP contributors. But we expect the pent-up demand accumulated during the Covid crisis, boosted by the easing of supply-side constraints, will lead a recovery in capex in the coming quarters.
What you will learn:
- Surveys show investment appetite in FY 2022 is historically strong, fuelled by large surpluses leftover from 2020 and 2021.
- On the demand side, the rebound in domestic consumption will encourage investment by non-manufacturers, and strategic investment needed for digital transformation and decarbonization is still significant.
- Corporate finance and credit condition also favour a recovery in investment.
Tags:
Related posts
Post
Airbnb’s Economic Contribution to APAC in 2024: GDP, Jobs, and Regional Impact
Airbnb's platform connects hosts across Asia Pacific (APAC) with travellers from around the world. Oxford Economics was commissioned by Airbnb to quantify its economic footprint in 10 APAC markets in 2024.
Find Out More
Post
Tariffs and tensions are reshaping city economies
Tariff policies, rising geopolitical tensions and unprecedented uncertainty are putting pressure on cities and regions across the world.
Find Out More
Post
What do the tariff letters mean for APAC and the China+1 strategy?
A tiered-tariff system effectively blurs the distinctions between goods made in China and those rerouted via regional supply chains, weakening the advantage of China+1 manufacturing.
Find Out More