In the media | 08 Jun 2023
Nikkei Asia: Pay in Japan is finally rising, but this won’t boost growth much
Norihiro Yamaguchi
Lead 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.
Tags:
You may be interested in
Post
Japan’s tariff turbulence to flatten near-term growth
We've cut our GDP growth forecasts for Japan by 0.2ppts to 0.8% in 2025 and by 0.4ppts to 0.2% in 2026, reflecting higher US tariffs and heightened global trade policy uncertainty. We now forecast that Japan's economy will barely grow over 2025-2026 on a sequential basis.
Find Out More
Post
25% auto tariffs especially painful in Japan and South Korea
US tariffs of 25% on all automobile and auto parts will weigh heavily on the Japanese and South Korean automotive sectors. A GTAP analysis suggests Japanese and South Korean automotive production will each shrink by approximately 7%. The impact is larger than suggested by bilateral trade data, because vehicles assembled in other countries before being shipped to the US will also be affected, dampening domestic auto parts production.
Find Out More
Post
‘Liberation Day’ 24% tariff will limit Japan’s growth
The 'Liberation Day' tariffs, together with separately announced higher tariffs on auto imports to the US, will lead us to cut our growth forecast for Japan. The direct impact of the tariffs will end the modest growth we projected in March, and we now think the economy will barely grow in 2025-2026. This initial estimate does not consider the indirect impact from high trade policy uncertainty and retaliation from other economies.
Find Out More