In the face of the ECB, in the meantime Japan is growing above expectations….
Today the ECB will announce the much-heralded 0.75% interest rate hike, the fulfillment of the German and Nordic dream that will likely accentuate economic distress in the EU and multiply business failures, depressing growth even further. . At the same time, Japan, which has not given up on its monetary policy, is growing. The Japanese economy expanded 0.9% from the equivalent quarter 2021 in the second quarter of 2022, compared to the flash figure of a 0.5% increase and after a revised upward 0.1% growth in the first quarter . The latest figure was higher than the market consensus for an increase of 0.7% , growing for the third consecutive quarter, thanks to the upward revision of private consumption (1.2% against 1.1% of the first estimate and after a 0.3% increase in Q1) following the lifting of all COVID constraints, as well as public spending (0.7% versus 0.5% of the flash data and after an increase of 0, 4% previously). In addition, business sentiment grew 2.0%, faster than initially thought (1.4%), reversing from the 0.1% decline in Q1. Net foreign trade also contributed positively, with stable export growth (0.9%) while imports increased at a slower pace (0.7% versus 3.5%).
In the long term, however, the economic outlook remains uncertain due to the weakening of the global economy, due to the new wave of infections in some countries, persistent supply chain problems and high commodity prices which drive up the cost. of family life. However, the problems for Japan appear to be a fraction of those of the European countries, and Japan is a staunch ally of the USA. It has simply applied to foreign and economic policy a degree of common sense and the absence of ideological extremism that now seems lost in the Old Continent, led by people to whom politics and ideology have blindfolded. We also recall that the Bank of Japan has defended its interest rate policy at all costs against international speculation, which the German-led ECB is unable to do.
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The article In the face of the ECB, in the meantime Japan is growing above expectations…. comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/alla-faccia-della-bce-intanto-il-giappone-cresce-al-di-sopra-delle-attese/ on Thu, 08 Sep 2022 07:00:36 +0000.