Japan pent-up demand is driving a capex recovery – for now
The post-pandemic recovery in business investment in Japan is lagging other GDP contributors. But we expect the pent-up demand accumulated during the Covid crisis, boosted by the easing of supply-side constraints, will lead a recovery in capex in the coming quarters.
What you will learn:
- Surveys show investment appetite in FY 2022 is historically strong, fuelled by large surpluses leftover from 2020 and 2021.
- On the demand side, the rebound in domestic consumption will encourage investment by non-manufacturers, and strategic investment needed for digital transformation and decarbonization is still significant.
- Corporate finance and credit condition also favour a recovery in investment.
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