Key View: At Fitch Solutions, we estimate Japan's real household spending to decrease by 5.5% in 2020. However, we note that spending in certain non-essential categories did accelerate over 2020. Household electrical appliances and home improvement sales has seen strong demand, outperforming its historical growth rates, as consumers are spending

Key View

• We at Fitch Solutions have revised down our real GDP growth forecast for Japan in 2021 from 2.7% to 2.5% given the looming uncertainty around the Summer Olympics in Tokyo.
• The economy surprised on the upside in the final quarter of 2020 growing by 12.7% quarter over quarter. In the year as a whole the economy contracted by 4.8%

Key View: As the Japanese tax authority gradually unifies its tax structure on the different categories of beers, it will create a revival in traditional beer consumption in the country while also stimulating innovation of products across beer segments. However, the impact of Covid-19 will continue to weigh on the sector in the short term.

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Key View

• We at Fitch Solutions forecast Japan’s budget deficit to reach 20.2% of GDP in FY2020, this marks a revision from 17.3% of GDP previously despite our upward forecast revision for Japan’s growth to average -6.3% in 2020 compared to -8.8% previously.
• The government has announced it will unleash a third extra budget for FY2020, with

Key View

• We are expecting strong demand for alternative protein ‘meat’ offerings (plant-based) from the Japanese consumer. The consumer base is already familiar with, and utilises plant-based products within their diet (tofu and natto) and we are increasingly witnessing alternative protein ‘meat’ product launches, both on-trade and off-trade

Key View

• US-retailer Walmart announced that it was selling its the majority of its Japanese business as part of its strategy to prioritise key markets and focus on the development of e-commerce capabilities.
• We note that the company's decision to withdraw from the Japanese market lies predominantly in three key reasons: a stagnant economic

Key View

• Japan’s new prime minister, Yoshihide Suga, will maintain policy continuity from his long-serving predecessor Shinzo Abe, but the next election, which must be held by October 2021, poses considerable downside risks.
• A failure by Suga to restore a sense of economic confidence after the Covid-19 induced recession would likely cost his

Key View

• We at Fitch Solutions forecast that Japan’s current account surplus will narrow significantly to 0.8% of GDP in 2020 from 3.6% in 2019 due to a contraction of the merchandise trade balance.
• In addition, services, which we had initially expected to cushion the narrowing trend, will also weigh on the surplus due to the postponement of

Key View

• Japan has pledged support for the Area 1 Mozambique LNG project supporting the outlook for Mozambique LNG although significant delays to LNG projects in Mozambique appear inevitable as market conditions deteriorate.
• LNG from Mozambique would further expand Japan’s current pool of LNG suppliers as it seeks further diversification of

Key View

• NMOSD has a high prevalence in Asia and there is growing market potential for new players to enter.
• Japan's approval of Enspryng will allow Roche to access a largely untapped, niche market.
• There is potential for other drugs to enter the market, which will pose downside risks to Roche.

Roche has announced that Japan’s Ministry