In September of this year, the Japanese government sustained its projection related to the economy
declaring that it was moderately recovering
, increasing the possibility of the current further development to become the second largest in the postwar time frame. In this article, our company formation
consultants in Japan
explain the related aspects of this projection.
Why positive economy projections in Japan?
There are positive projections on the economy in Japan since the Cabinet Office used the expression “on a moderate recovery” for a fourth consecutive month. However, it made no revisions on its assessment on individual aspects of the local economy like the private consumption and the business investment.
The present development phase started in December 2012 and is predicted to have continued in the 58th month since then. Our company registration advisors in Japan
can offer assistance related to opening a company
in this country.
Assisted by a strong local demand, the economy registered a yearly real 2.5% increase in the April-June quarter of this year. However, some economists expect tepid wage gains even though there is a tight labor market and they have a more pessimistic projection on the consumer spending.
The Cabinet Office maintained its projection that the global economy has “moderately” recovered, using the same expression for a sixth consecutive month.
A brief economy forecast in Japan
The economic increase
is forecasted to reach 1.4% this year, due to more solid international trade in Asia and because of certain fiscal incentives in the country
Even though the fiscal support is projected to decrease next year, the labor and capacity shortages, as well as record-high business profits will sustain employment and business investment, maintaining the growth rate at 1%.
The main deficit next year is forecasted to maintain well beyond the 1% GDP benchmark of the government. This will lead to a further increase in the ratio of the government debt to GDP. Our consultants can assist you in starting a company in Japan
, as well as in all the registration procedures required.
To sustain the Japan public finances trustworthiness, drawing and implementing a more detailed consolidation plan, as well as a gradual growth in the consumption tax rate, represents a main concern.
If you have any questions about the government outlook on the local economy
, as well as for help related to setting up a company in Japan
, please contact Japan company formation