Japan Economics

Japan Economics Focus

27 June, 2018

Will productivity growth rebound?

Forecasting shifts in productivity is notoriously hard but past experience suggests that the recent slowdown in productivity growth in Japan should reverse over the coming decade. Nonetheless, with the drag from a shrinking working age population intensifying, potential GDP growth may not end up any stronger than the current half a percent or so. And if the productivity rebound we’re expecting doesn’t happen, Japan’s economy may stop growing altogether.

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