- Japanese economic data has been relatively disappointing in 2021
- This has been fueled by a decline in private consumption
- With the State of Emergency only lifted at the end of September, savings rates remain elevated
- A normalisation of household saving rates would be a significant boon to the economy
- An alleviation of supply issues, particularly in the auto sector, should lead to a recovery in industrial production
- With Covid restrictions having been lifted much later than in other developed economies, Japan is due an economic catch-up
The Japanese Economy into 2022
(Dec 21) Ben Williams, Assistant Portfolio Manager to the Arcus Japan Fund, assesses the disappointing nature of Japan’s economic data in 2021 and the prospects for a significant “catch-up” in 2022.