23 Dec 2014
Japan faces uphill battle in 2015 – MP
FXStreet (Barcelona) - Alfonso Esparza, Senior Currency Strategist at MarketPulse, notes 2015 would be the year of challenges for Japan as slower global growth will make navigation choppy for its economy.
Key Quotes
“Next year will be challenging and not just for Abenomics to reach its lofty goal of 2% inflation, but Japan as a whole to navigate the turbulent waters spiked by slower global growth.”
“The Trans-Pacific Partnership still faces many obstacles to become a reality. Japanese unwillingness to negotiate certain issues is a big part of it. The U.S. and Japan could stand to gain the most from this far-reaching agreement, but they are also the ones that have the higher number of protectionist requests to limit the impact of the proposed deal.”
“After the increase of factory outsourcing and the lower exports to China, the Japanese economy needs to increase exports that will benefit from a weaker currency, as opposed to those in shrinking markets or where costs have gone up due to a depreciating yen.”
Key Quotes
“Next year will be challenging and not just for Abenomics to reach its lofty goal of 2% inflation, but Japan as a whole to navigate the turbulent waters spiked by slower global growth.”
“The Trans-Pacific Partnership still faces many obstacles to become a reality. Japanese unwillingness to negotiate certain issues is a big part of it. The U.S. and Japan could stand to gain the most from this far-reaching agreement, but they are also the ones that have the higher number of protectionist requests to limit the impact of the proposed deal.”
“After the increase of factory outsourcing and the lower exports to China, the Japanese economy needs to increase exports that will benefit from a weaker currency, as opposed to those in shrinking markets or where costs have gone up due to a depreciating yen.”