Japan: Economy to continue sluggish growth in 2017 - Rabobank

Research Team at Rabobank expects that the Japanese economy will continue to show sluggish growth in 2017 and the years beyond, with very low inflation and government finances that are seriously out of balance, despite vigorous efforts by the Bank of Japan in particular to stimulate both growth and inflation.

Key Quotes

“The Japanese government’s debt is largely in the hands of Japanese financial institutions, including the central bank. As a country, Japan still has a savings surplus as shown by its current account balance and sizeable positive net international capital position. Despite the unusual monetary situation and government debt running out of control, an acute financial crisis does not really appear to be likely.”