07-11-2023, 10:55 AM
(07-11-2023, 10:38 AM)cityhantam Wrote: https://www.forbes.com/sites/williampese...218b5c2f53
China Setting Stage For Japan’s Next Big Recession
“Looking further down the horizon, Japan’s economy will be hurt by a lasting deceleration in Chinese growth, the techno-war and geopolitical tension between China and the West that has led to de-risking and Chinese intellectual property theft from Japanese firms located inside China,” says economist Richard Katz, publisher of the Japan Economy Watch newsletter.
The biggest immediate impact, Katz says, is exports. He calculates that every 10% decline in exports to China directly reduces Japan’s gross domestic product by 0.4%. That’s roughly the amount by which Japan’s exports to China fell in the first eight months of 2023. Things, of course, may get worse as U.S. bond yields and global tensions surge in tandem.
In addition, Katz notes, every 1% drop in Chinese GDP growth shaves off about 0.3% of GDP for Asia generally. These dynamics explain why the Bank of Japan is in no hurry to take its foot off the monetary accelerator pedal.
.
.
China's fault!
You support China meh?
![Thinking Thinking](https://sgtalk.net/images/smilies/Animated/thinking_s.gif)