More Than 70% Of Japanese Firms Expect Economy To Grow In 2024

A Kyodo News survey of Japanese firms shows that the clear majority expect Japan’s domestic economy to continue growing in 2024.

The responses, which were filed from late November till almost the end of December, further revealed a belief that Japan’s consumer and capital spending will more than counteract the negative effects of inflation.

113 companies contributed to the survey, including many of the country’s largest firms, such as Toyota and SoftBank.

Specifically, 72% of respondents expect moderate growth in 2024.

Some of the optimism comes from expected upticks in capital spending, especially in the semiconductor industry, one example being Rapidus Corporation’s ongoing construction of a semiconductor plant adjacent to New Chitose Airport outside of Sapporo.

While not all firms interviewed expected growth in 2024, none forecast a recession.

In line with Prime Minister Kishida’s many calls for higher wages, 43% of respondents said they are considering or planning on implementing them, with 45% saying their firms are undecided on the issue.

Of particular interest is whether the Bank of Japan will continue its longstanding policy of quantitative easing throughout 2024 or normalise its monetary policy.

Source:
Kyodo News – 3 January 2024

Images:
Nryate – Nagoya Night View
Hokkaidowikieditor – Rapidus

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