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Japan’s Economy Faces Headwinds After Topping 4Q Forecasts

  • Economists warn of soft patch ahead, risks from stronger yen
  • Industrial production data are among signs of rougher going
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Sayuri Shirai Sees Japan's Economy Growing Moderately
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After a run of smooth sailing, Japan faces choppier economic waters, including a stronger currency and the risk of a global trade war.

Japan’s economy grew a better than expected 1.6 percent in the fourth quarter, but is now likely entering a soft patch, economists say, with a chance that the longest run of expansion in nearly three decades could end in the first quarter. This would hurt the Bank of Japan, which has been making some progress toward 2 percent inflation.