Key View

• We continue to expect the Bank of Japan to stay accommodative and keep its policy rate at a record low of -0.10% through 2023 to support growth amid limited risks to inflation.
• This comes after the policy board voted 8-1 to keep its monetary policy setting unchanged at its meeting on April 27-28.
• Although we have revised our average

Key View

• In our latest yen forecast, we highlighted downside risks to the currency, but the sharp depreciation in recent trading, with the unit touching a 20-year low, has taken us by surprise.
• The currency is currently trading at JPY128.16/USD, and we see the potential for further depreciation given weak technical and fundamental factors.
• W

Key View

• We at Fitch Solutions anticipate that Japanese Prime Minister Fumio Kishida will maintain broad policy continuity following elections to the Upper House scheduled for July 2022.
• The LDP’s main policy priorities over the coming months will be sustaining the economic recovery from the latest wave of Covid-19 and mitigating the impact

Key View

• The Omicron variant wave will boost consumables, patient aids and diagnostics in the mid term in Japan.

• Japan’s above-trend economic growth will continue but headwinds will mount throughout 2022. Economic growth will support medical device market growth.

• The country's anticipated Covid-19 vaccination programme expansion

Key View

• Japan will experience a surge in nuclear power generation over 2022 and 2023, as suspended nuclear power plants resume operations after clearing safety requirements.
• Obtaining approvals for nuclear reactor restarts will remain a challenge for utility companies, subduing long-term growth.
• We remain cautious on the realisation of new

Key View

• Japan will continue to grow above trend in 2022, but the sharp increase in new Covid-19 cases at the start of the year will curb momentum in Q122.
• Weaker-than-expected growth in 2021 has prompted us at Fitch Solutions to revise upwards our growth forecast for 2022 to 2.5% from 2.0% owing to more favourable base effects, but Omicron

Key View

• Japanese automakers will struggle to ramp up vehicle production in 2022 as the global chip shortage continues and the spike in Japan's Covid-19 infections is causing additional operational stoppages.
• Demand for vehicles remains strong globally, which will motivate Japanese automakers to try and increase vehicle production where

Key View

• Japan’s Prime Minister Fumio Kishida will maintain loose fiscal policy over the coming quarters as he seeks to sustain support for his Liberal Democratic Party (LDP) ahead of Upper House elections in July 2022.
• The LDP and its coalition partner Komeito are well positioned to retain their majority in the chamber, mainly because the

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Implic

Key View

• At Fitch Solutions, we expect that Japan will continue to grow above trend in 2022, although at a slower rate than in 2021, largely owing to less favourable base effects.
• We estimate Japan to have grown by 2.2% in 2021 and we forecast it to grow by 2.0% in 2022.
• Real-time data tracking restaurant bookings, cinema ticket sales and