Japan to grow in 2016 - Nomura

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Guatemala) - In respect to Japan, analysts at Nomura explained that they forecast a slight economic slowdown in 2015 Q4, but growing momentum thereafter.

    Key Quotes:

    "The Japanese economy registered q-q growth in the three key categories of private consumption, private capex, and exports in 2015 Q3. Looking ahead, we expect real GDP growth to slow to +0.6% q-q annualized in 2015 Q4.

    Given that the first set of preliminary data from the Cabinet Office showed negative q-q contributions from input and work-in-progress inventories and product inventories were also down in October, we think that private-sector inventories will hinder real GDP growth for the second consecutive quarter in 2015 Q4, making a contribution of -0.5ppt q-q annualized.

    Meanwhile, the survey of manufacturers’ production forecasts and the historical deviation between forecasts and actual figures have led us to forecast growth in industrial production of only 0.6% q-q in 2015 Q4 even though October industrial production was up m-m.

    However, we expect real GDP growth to remain at 1.5–2.0% q-q annualized from 2016 Q1 onwards as inventory corrections and the household income climate improve alongside corporate earnings."
    For more information, read our latest forex news.
     

Share This Page

free forex signals