The Japanese economy may already be in technical recession, but we expect the downturn to be relatively short-lived and shallow. Sharp falls in inflation will boost real incomes, while Japan has avoided the fundamental economic and financial imbalances that threaten to drag the US and the UK into a prolonged recession. Overall, we expect GDP to grow by around 0.5% this year and 0.8% next year, which would make Japan the only major economy to record stronger growth in 2009 than in 2008.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services