Well, the numbers are in and Japan is experiencing a recession. The national economy lost ground in the last 2 quarters and is now by definition, in recession. Hmmmmm. What does this mean? Depends on who you ask. Japan has a myriad of elements to its national economic mix: technology for sure; heavy industry, automobile manufacturing, numerous connections in other parts of the world including China, India, and the USA.
But at home, consumers have been reluctant to spend, again. Caught in a bind between interest rates, spending, and saving. While deflation has not been mentioned yet, Japan has been struggling for years to put some life into its consumer spending side. Famously frugal, the Japanese saver(s) are slow to respond to government expectations. Why spend? I might need more money tomorrow, or next week, or next month, or ............................
So, the world watches as the USA soars to new economic heights. Oh, and don't forget to look west across the Sea of Japan. See the behemoth there? That's the 2nd largest economy in the world and they, too, are in recession. Hmmmmmmm. What now Xi?
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