Economists Warn of Possible Slowdown of Japanese Economic Growth in 2018
The economy of Japan has shown the longest period of continuous growth since the rise of the 1980s. Government data showed that GDP growth in the period from October to December 2017 amounted to 0.5% in annual terms, which was below the forecast of analysts at 0.9%. Compared to the previous quarter, growth in runways in the fourth quarter was 0.1%, also slightly below analysts' forecast at 0.2%, after rising 0.6% in the period from July to September. According to preliminary estimates, Japan's economy grew by 1.6% in 2017.
The continuing economic recovery is an encouraging signal for the Bank of Japan, indicating that GDP growth may have finally gained momentum in order to bring consumer prices closer to the 2 percent target of inflation.
But still, some experts warn that Japan's economic growth may slow down this year. Marcel Thieliant, Japan's senior economist in the research firm Capital Economics, suggested that in 2018, GDP growth may fall to 1.2%.