Our Country Risk team forecast Japan s real GDP growth to average -.- over the next five years. The economic outlook in two of Japan s key trading partners, China and the US, is set to deteriorate, which will affect Japan s manufacturing industry, while an ultra loose monetary policy at home and the prospect of further quantitative easing on the back of a corporate tax cut in April ---- could both reduce purchasing power. ...Our Country Risk team forecast Japan s real GDP growth to average -.- over the next five years. The economic outlook in two of Japan s key trading partners, China and the US, is set to deteriorate, which will affect Japan s manufacturing industry, while an ultra loose monetary policy at home and the prospect of further quantitative easing on the back of a corporate tax cut in April ---- could both reduce purchasing power. Over the long term, investment will likely remain low, while the increasing role of private consumption as a share of GDP, as Japan s population ages, will lead to a continued fall in the savings rate, and a steady decline in net exports. ...We see total household spending coming in at USD-,---bn in ----, rising to USD-,---bn by the end of our forecast period. As a share of GDP, household spending will increase slightly, from --.- to --.- .
...Japan has a mature, transparent business environment that is welcoming to foreign investment. The country s infrastructure is good, making distribution of goods easy for retailers and suppliers. ...More than -- of Japanese people are forecast to live in urban areas by ----, giving retailers easy access to large groups of potential consumers. The population is affluent, with more than -- of households earning a net income of more than USD--,--- a year, and the number of households earning more than USD--,--- set to rise significantly to USD--,---. This creates a large market for retailers of non-essential and luxury goods. ...This creates a large market for retailers of non-essential and luxury goods. Unemployment is set to remain stable across our forecast period, at around -.- .
...� In early June ----, Japan s Prime Minister Shinzo Abe announced that the government plans to postpone the planned sales tax hike from - to -- until late ----. � Electronics retailer Nojima Corp is accelerating its new store openings on the back of strong sales of white goods and anticipation of an Olympics boost in televisions for Tokyo ----. ...
