Good News, Growth Laggards. You’re Ahead of the Game
Some economists are starting to worry that central bankers will overreact with aggressive rate hikes. Japan’s disappointing recovery means that’s not an option.
A decent starting point.
Photographer: John W. McDonough/Sports Illustrated via Getty Images
Inflation is surging around the globe and central bankers are fretting that growth is running hot, yet officials in the world’s third-largest economy seem oddly relaxed. Has the great post-pandemic reflation skipped over Japan? A closer look at the data show its recovery has been less than stellar and prospects for walking away from stimulus seem ever more remote.
Figures released Tuesday showed a return to expansion, with gross domestic product increasing at a 5.4% annualized pace last quarter, after a slump in the prior three months. The gain fell short of forecasts, however, and the economy may again contract in January to March. Renewed restrictions on social and business activity to constrain omicron are taking a toll.