18 Dec 2014
Japan may see a real GDP growth of 0.9% in 2015 – GS
FXStreet (Barcelona) - The Goldman Sachs Research Team anticipate Japan’s real GDP to grow to 0.1% in 2014 and 0.9% in 2015.
Key Quotes
“We expect real GDP growth of 0.1% in 2014 and 0.9% in 2015. On a sequential basis, growth fell for the second quarter in 3Q2014 following the consumption tax hike, which means that the Japanese economy has technically entered recession. This prompted a delay in a second round of tax hikes from 2015 to 2017.”
“Following the recent second consecutive negative GDP print, the authorities have announced changes to stimulate the economy, including pushing back the consumption tax hike. The new leadership at the BoJ has led to a regime shift in Japanese monetary policy, with much more aggressive, Fed-style easing capabilities. While this potentially offers a way out of more than a decade of deflation, reaching the 2% inflation target remains a tall order.”
Key Quotes
“We expect real GDP growth of 0.1% in 2014 and 0.9% in 2015. On a sequential basis, growth fell for the second quarter in 3Q2014 following the consumption tax hike, which means that the Japanese economy has technically entered recession. This prompted a delay in a second round of tax hikes from 2015 to 2017.”
“Following the recent second consecutive negative GDP print, the authorities have announced changes to stimulate the economy, including pushing back the consumption tax hike. The new leadership at the BoJ has led to a regime shift in Japanese monetary policy, with much more aggressive, Fed-style easing capabilities. While this potentially offers a way out of more than a decade of deflation, reaching the 2% inflation target remains a tall order.”