Skip to main content

Q1 weakness a prelude to slower growth this year

We wouldn’t read too much into the contraction in GDP last quarter. After all, trend growth in Japan is low and the drop in output followed eight consecutive quarters of expansion, the longest stretch in three decades. The available data suggest that growth resumed this quarter. Still, the economy is running into capacity constraints which will put a lid on how fast output can expand. Firms are facing increasingly severe staff shortages and there isn’t much scope to expand working hours. We reiterate our forecast that GDP growth will slow from 1.7% in 2017 to 1.2% this year.

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


Get access