Japan’s economy tipped to grow

Corporate sentiment in Japan is up from a year ago with more than 70 per cent of the country’s major companies expecting the domestic economy to grow in 2024, according to a new survey.

Businesses quizzed by Kyodo News believe solid consumer and capital spending are set to overcome the impact of inflation, the agency report.

Toyota Motor Corp was among the 113 companies that took part in the survey, with results showing 72 per cent expect moderate growth and one per cent predict solid expansion this year.

The responses compare with only 56 per cent of firms anticipating moderate or solid growth heading into 2023.

The more positive outlook coincides with the Organisation for Economic Cooperation and Development forecasting one per cent growth for Japan’s economy in 2024, reports Kyodo News.

A recovery in private consumption, a lift in capital spending, and spending by the increasing number of foreign visitors were cited by survey respondents as reasons why companies expect growth this year.

Only three per cent of the businesses surveyed expect the economy to contract moderately and 22 per cent forecast zero growth.

A total of 43 per cent of the respondents said they are considering or planning pay hikes, while 45 per cent are undecided.

The survey was carried out between late November and late December.