Japan's economy is starting a new chapter
The world’s third-largest economy has suffered from a caricature. Yes, Japan fell from its pinnacle in the 1990s because of a property crash, enfeebled banks and a dwindling population. But that was then. It’s not falling anymore.
When Japan’s economy was stumbling, China became the darling of the commentariat, investors and multinational companies developing supply chains. The mood toward China, however, has soured. Now the international impression of Japan needs to change as well.
Far from fizzling, Japan may be on the cusp of a boom, according to a comprehensive report by Morgan Stanley. Deflation has been stymied, immigration is slowly but surely increasing, and that 2.5 percent jobless rate is driving a surge in capital spending. A lot of that is likely to be on artificial intelligence and robotics.
Capital expenditure growth among large firms will average about 7 percent a year through 2020, Morgan Stanley estimates, up from 5 percent last year. Outlays like this are essential as the labor pool dries up. That became abundantly clear to me on a trip to Japan’s Rust Belt in 2016. Employers gushed about robots and bemoaned the shrinking pool of skilled humanoids.
Nestled in recent revisions to second-quarter gross domestic product was a jump in private investment: a climb of 3.1 percent, compared with an originally reported 1.3 percent. That was the seventh consecutive increase, a stretch unseen since the bubble era of the 1980s. That period didn’t end well, and plenty could still go wrong this time.
But give Japan its due. It’s a very different place from two decades ago, when observers abandoned it for China and all those business-book paeans to the Japanese way of business were replaced by hagiographies of the Middle Kingdom.
Japan has had its share of false dawns since then. The central bank has tried to crank inflation up to 2 percent and years of aggressive easing have got it barely halfway. Looked at another way, at least we are talking about too-low inflation, rather than deflation.
News On Japan - Nov 26
Panicked passengers on a Shinkansen bullet train were evacuated at a central Japan station on Friday night, after a plastic bag containing suspicious liquid was found onboard.
News On Japan - Nov 26
A 29-year-old man has been arrested for meeting an underage teen girl, with sexual intent, after sending her messages, promising to make her "the happiest in the world".
News On Japan - Nov 25
Inui Street, the famed autumn walk within the Imperial Palace in central Tokyo, opened to the public from Saturday.
News On Japan - Nov 25
Nissan Motor Corporation has announced plans to transition all its vehicles produced in the United Kingdom to electric vehicles (EVs).
News On Japan - Nov 25
A JR West Japan train conductor has been arrested for secretly filming eight women in the toilet of the express train "Haruka" while on duty.
News On Japan - Nov 25
Tofukuji Temple, home to 2,000 maple trees and renowned as one of Kyoto's premier autumn hotspots, features the Tsutenkyo Bridge, and the breathtaking 'sea of autumn leaves'.
News On Japan - Nov 25
The strongest cold snap of the season has brought a dramatic drop in temperatures to northern Japan, where snow began falling Friday morning, with up to 50 cm expected in Hokkaido and Tohoku by Saturday evening, and a chance of blizzards.
News On Japan - Nov 24
It's Shichi-Go-San, the Japanese festival season for celebrating the healthy growth of children, with Aibo the robot dog giving prayer at a shrine in Fukuoka, on Friday.
NHK - Nov 24
Japanese police are investigating a stabbing incident that took place at a music arena in Yokohama City, south of Tokyo, on Thursday.
News On Japan - Nov 24
The amount of undeclared income by wealthy people in Japan has reached a record high of 98 billion yen, among the worst offenders being scrap gold wholesalers, breeders and yakiniku restaurants, the National Tax Agency announced on Friday.
Total Film - Nov 24
After hitting the big screen in its native Japan on November 3, Godzilla Minus One is about to make its way overseas – and it's a hit with international critics.
NHK - Nov 24
Tokyo has a new landmark, a 330-meter-high skyscraper that opened on Friday. The Mori JP tower has 64 floors for shops, offices and residences. It's the tallest building in Japan, a title that previously belonged to the Abeno Harukas commercial and business tower in Osaka, western Japan.
theceomagazine.com - Nov 24
Shitennō-ji temple is one of Osaka’s most important Buddhist temples. Built in the sixth century during the rule of Prince Shotoku, it has stood firm as the high-rises of the modern-day city have towered above it.
News On Japan - Nov 23
As street dance reaches fever pitch in the lead up to the 2024 Paris Olympics with the inclusion of breakdancing, one of Japan's largest street dance events was held in Yoyogi Park, Shibuya, Tokyo.
News On Japan - Nov 23
Russians continue to be the worst offenders among cars with foreign diplomatic number plates when it comes to not paying off parking fines in Japan.
News On Japan - Nov 23
As Kyoto's autumn foliage reaches its peak, swarms of tourists have converged on the ancient capital, captivated by stunning displays like Wednesday evening's illumination at Kiyomizu Temple.