Japanese Economic Recovery Fostered by the Global Upswing

The Japanese economy should have recovered following the decline of stocks and strengthening of yen to sustain a decent growth rate for this fiscal year, according to the survey from the private sector.

The real gross domestic product at an annualized rate is 0.5 percent in the last quarter of 2017, based on the reports from the cabinet office on Wednesday. High exports supported this growth, as well as, the private consumption following the recovery from last year's typhoon season.

It grew for eight consecutive quarters which has been the longest trend on the rise for 28 years. This does not include the volatility in the international financial market which is due to the rally in U.S. Treasury yields.

Despite the recent volatility, private economists from 16 companies are seen to have a real GDP growth by 1.7 percent for fiscal 2017 until March. The average target is 1.3 percent for the present fiscal year.

A large tax reduction passed by Washington is anticipated to have a good effect on the U.S. economy and is likely to be a positive effect for Japan and other trading partners.

The majority see the economy to exceed the growth rate forecast estimated to 1 percent until the third quarter of next year, prior to the proposed national sales tax hike of 10 percent in October same year.

The director of NLI Research Institute, Taro Saito, said that growth of corporate sector including Exports and capital expenditures. Possible growth of consumption is relative to the spring labor talks if the decision concluded a significant pay increase.

Considering the present global condition, there is a promising outlook for the Japanese economy. It is anticipated to rise by 3.9 percent this year, based on the report from the Monetary fund in January, which is 0.2 higher compared to October estimate last year.