Japan: Better growth outlook - BNPP

Research Team at BNP Paribas notes that the Japan’s GDP growth surprised on the upside in Q3, as exports rose solidly and the recent improvement in the global cycle and expected US fiscal expansion suggest the economy will grow more strongly in 2017 than previously expected.

Key Quotes

“But with the economy at full employment, the typical pass-through into higher Japanese growth from improved US growth may be damper than usual. We now forecast Japanese growth at 0.9% in 2017 and 0.7% in 2018.”