QNB: Japan is on track for rebound in economic growth

Doha: Qatar National Bank (QNB) said that economic growth in Japan is set for a recovery next year, on the back of real income growth boosting consump...

Doha: Qatar National Bank (QNB) said that economic growth in Japan is set for a recovery next year, on the back of real income growth boosting consumption, fiscal stimulus and an improving outlook for export oriented sectors.

In its weekly commentary, QNB said, "At the beginning of the year, optimism shaped the outlook for economic growth in Japan. The expected pace of real GDP expansion for 2024 stood close to 1 percent.

Even if not impressive by cross-country comparisons, this was encouragingly above the 0.75 percent annual average for Japan since 2000.

The relative optimism gradually faded throughout the year, amid a challenging context of weak external demand, stagnant consumption, and geopolitical uncertainty.

Recent forecasts even point to a slight contraction of the Japanese economy for this year. However, headwinds are easing, and conditions are becoming more favourable for the Asian country."