Half of firms in Japan anticipate economic growth in 2023: Survey

05 Jan '23

2 min read

Pic: Shutterstock

Due to rising prices of natural resources and raw materials triggered by the Ukraine-Russia war and the weak yen, only around half of the major Japanese firms expect the domestic economy to grow this year, according to a survey of 117 companies by a news agency. Fifty-six per cent of respondents expect solid expansion or moderate growth this year, sharply down from 84 per cent a year ago.

The percentage of firms foreseeing growth was at its second lowest in 10 years in the survey, with responding companies also cautious about slowdowns in the United States and China this year.

Thirty-four per cent said they believe the economy will be flat while only seven companies predicted a moderate contraction. None believed the economy would fall into a recession.

Ninety-two per cent of the companies that expect growth cited a recovery in consumer spending after its plunge due to the coronavirus pandemic, the news agency reported.

Of the respondents that did not expect growth, 70 per cent cited rises in prices of natural resources and raw materials, followed by 45 per cent forecasting a sluggish personal consumption.

On Prime Minister Fumio Kishida's policy agenda, the survey showed around half of the companies back the promotion of digital transformation and measures to reduce carbon dioxide emissions and promote renewable energies.

Fibre2Fashion News Desk (DS)

More Textiles News - Japan...