New Risks For Japan's Economic Growth
Japan’s northern island of Hokkaido has suffered from a strong earthquake overnight. The island is a famed area for agriculture and open spaces that accounts for about 3.5% of the nation’s economy, but the biggest sectors are sales, real estate and manufacturing.
There are no economic projections on the damage yet, the impact of disasters will most likely be felt in GDP for the July-September period. Revised gross domestic product data for the three months through June will be published on September 10. The data are expected to show annualized growth of 2.6%.
Data on industrial production, retail sales value, and exports are Japanese economic indicators for July 2018 that have already been released were generally weak. In particular, the weakness of exports in trade statistics and in the new export orders index in the Japan manufacturing Purchasing Managers’ Index (PMI) points to downside risks for external demand in 2018 Q3.