Reuters’ expert surveys have revealed that Japan’s economy will develop at a slower pace this quarter than previously expected, despite forecasts for a robust comeback in consumption after displaying resilience in the three months through March.
The world’s third-largest economy is in danger of being hampered by China’s slowing economic development and a rise in global raw material costs, both of which might harm Japan’s core manufacturing sector, according to a survey.
Japan’s economy was projected to expand at an annualised 4.5% this quarter, below April’s estimate for 5.1% growth, according to a Reuters poll of 36 analysts.
A slowdown in Chinese economic growth was the most frequently cited issue posing a risk to Japan’s economy.
However, the poll still indicates growth will be strong enough for the economy to recover to pre-coronavirus pandemic levels by 2019.
The poll also found core consumer prices will rise 2.0% this fiscal year, and 0.9% in fiscal 2023.
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