According to a study of 117 companies by a news agency, just about half of the large Japanese enterprises anticipate domestic economic growth this year due to rising prices of natural resources and raw materials brought on by the conflict between the Ukraine and Russia and the weak yen. Compared to 84% a year ago, only 56% of respondents now predict strong expansion or moderate growth for this year.
According to the study, the proportion of businesses expecting growth was at its lowest level in ten years. The responding businesses were particularly wary of this year’s slowdowns in the US and China.
Only seven businesses expected a modest contraction, while 34% predicted the economy will remain level. No one anticipated a recession to hit the economy.
According to the news agency, 92% of the businesses anticipating growth cited a rebound in consumer spending following a decline brought on by the coronavirus outbreak.
70% of those polled who said they did not anticipate growth cited rising costs for raw materials and natural resources, with another 45% predicting a slowdown in personal expenditure.
According to the study, around half of the businesses support policies to foster digital transformation, cut carbon dioxide emissions, and support renewable energy sources, all of which are on Prime Minister Fumio Kishida’s policy agenda.
