Moody's latest issue of Inside Japan
- Japanese economy is showing evidence of incremental progress on reflation
- Helped along by the government's announcement of a fiscal package in August 2016 & the Bank of Japan's yield curve control framework a month later
- Somewhat stronger external demand has augmented the impact of these measures
- Further tangible effects will likely materialize in 2017, as the promised fiscal stimulus is fully implemented
- Faster economic growth is positive for the sovereign, because it helps to continue stabilizing the country's high public debt burden, its foremost credit weakness
Moody's also citing:
- the yen has weakened considerably since September 2016
(they may need to update this :-D )
More:
- the near-term risks to Japan's growth outlook are broadly balanced
- Moody's expects policy stimulus to provide support to the domestic economy, offsetting downside risks related to potentially more protectionist US trade policy
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Moody's "Inside Japan" is a bi-annual compendium of recent Moody's research and commentaries
