20 Feb 2015
Japanese GDP could grow 2.3% on a year to Q4 2016 – DB
FXStreet (Edinburgh) - Analysts at Deutsche Bank remain optimistic regarding the Japanese economic growth.
Key Quotes
“We maintain the current forecast that two virtuous cycles will continue in 2015-2016, which were started following the quantitative and qualitative monetary easing in April 2013”.
“The first virtuous cycle is on domestic economy where profit recovery leads to growth in employment and wages, which then leads to consumption recovery and feeds back into growth of sales and profit of companies”.
“The second is about interaction between real economy and asset prices where GDP growth exceeds the long-term interest rates”.
“We forecast economic growth over the next eight quarters to Q4 2016 to be annualized 1.7% for real GDP and 2.3% for nominal GDP”.
Key Quotes
“We maintain the current forecast that two virtuous cycles will continue in 2015-2016, which were started following the quantitative and qualitative monetary easing in April 2013”.
“The first virtuous cycle is on domestic economy where profit recovery leads to growth in employment and wages, which then leads to consumption recovery and feeds back into growth of sales and profit of companies”.
“The second is about interaction between real economy and asset prices where GDP growth exceeds the long-term interest rates”.
“We forecast economic growth over the next eight quarters to Q4 2016 to be annualized 1.7% for real GDP and 2.3% for nominal GDP”.