In the media | 08 Jun 2023

Nikkei Asia: Pay in Japan is finally rising, but this won’t boost growth much

Norihiro Yamaguchi

Senior Economist

“Rising wages in Japan look set to have a limited impact on inflation and, more importantly, on economic growth in the coming years, contrary to the hopes of Kishida and Abe.” – Norihiro Yamaguchi, Senior Economist, and Makoto Tsuchiya, Assistant Economist at Oxford Economics, share an op-ed for Nikkei Asia to discuss Japan’s higher wages and its impact on inflation and economic growth.

Read the op-ed below:

Pay in Japan is finally rising, but this won’t boost growth much

To download our latest reports for the Japan, please check Resource Hub – Oxford Economics.

You may be interested in

Post

BoJ to raise its policy rate cautiously to 1% by 2028

We now project that the Bank of Japan will start to raise its policy rate next spring assuming another robust wage settlement at the Spring Negotiation. If inflation remains on a path towards 2%, the BoJ will likely raise rates cautiously to a terminal rate of around 1% in 2028.

Find Out More

Post

Japan inflation to rise to 1.8%, but downside risks are high

Reflecting a surprisingly strong Spring Negotiation result and weaker yen assumption, we have upgraded our baseline wage and inflation forecasts. We now project higher wage settlements will push inflation towards 1.8% by 2027. Uncertainty is high, however.

Find Out More

Post

How inflation eroded governments’ debts and why it matters

The supply-shocks era represented the first time in a generation where inflation significantly eroded the real value of global public debt. For EMs, the erosion averaged 3.7% of GDP between 2020 and 2023; the average for advanced economies (AEs) was twice that (7.3% of GDP).

Find Out More