,Japan

Japan's GDP growth slowed to 0.7% in 2018

Companies that supply parts and components to China were hit by weak demand.

Japan’s GDP for 2018 softened to 0.7% from 1.9% in 2017 even as a slight year-end recovery failed to offset a continuous decline in external demand.

The country’s 4Q 2018 GDP rebounded 1.4% YoY following a 2.6% decline in Q3 after domestic demand countered the damaging effects of their decreasing external demand as private spending grew 0.6% QoQ. Exports also bounced back 0.9% from a 1.4% slip in Q3.

However, moderating global demand brought about by the ongoing US-China trade wars has hit some Japanese companies who supplies parts and components to China.

According to a UOB Kay Hian report, economic growth will further ease to 0.5% in 2019 due to external and domestic challenges as private spending is tipped to take a hit after Q4 2019.

“Japan’s 2019 growth outlook will face significant challenges on two fronts: trade uncertainties and domestic market weakness in the face of another sales tax hike,” said Alvin Liew, senior economist at UOB Kay Hian.

As for the upcoming consumption tax hike to 10% from 8% in October 2019, Liew noted that it would soften the chance of reviving consumption in 4Q 2019 and into 2020. 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Module integration and completion are not part of its responsibilities.
The company says it will continue to welcome feedback from workers.
OneMap3D data from ERA will be incorporated into its RealtyWatch mobile apps
$500,000 was contributed to the library's Green Grove showcase.
He has over 25 years of experience in business and risk roles.
The country also won 'Best Seaport in Asia' for the 33rd time.
Flight bookings were made available on 22 October.
Sembcorp Industrialshowed the most growth.
Analysts said there are three factors that drove the price growth.
Prices of private residential properties rose by 1.1% in Q3, marking the sixth consecutive quarter of growth.
72% of Singaporeans were aware of the term 'ESG.'
This strong performance was due to the recent acquisitions by the company.