What happens to the Yen?

[Mista]

Lower yen is beneficial to an export-oriented economy, no?

Contrary to popular belief, Japan is actually not that export-dependent. Like other G7 countries, domestic household consumption account >50% of their GDP and thus their economy is more sensitive to consumer sentiments. For many years they say that Japan's consumer sentiment has been weak due to an aging population and deflation, that's why their policymakers are keen to push up inflation to ~2%.

List of largest consumer markets - Wikipedia

en.wikipedia.org

Japan has ‘once-in-lifetime’ chance to end deflation, says departing BoJ official

Outspoken reflationist Goushi Kataoka backs bold easing measures to capitalise on rising prices globally

www.ft.com

In fact, Japan runs a trade deficit more often than a trade surplus.

Real Net Exports of Good and Services for Japan

Graph and download economic data for Real Net Exports of Good and Services for Japan (JPNRGDPNGS) from Q1 1994 to Q1 2024 about Japan, exports, Net, goods, services, and real.

fred.stlouisfed.org

However, Japan still has large NIIP and current account surplus over the years due to investment income from overseas. Their investment income is funding their imports from a balance of payment perspective.

Japan Current Account Balance, 1996 – 2023 | CEIC Data

Japan Current Account recorded a surplus of 14.2 USD bn in Apr 2023, compared with a surplus of 7.5 USD bn in the previous month.

www.ceicdata.com

Japan logged a trade deficit of 1.21 trillion yen or about 8.4 billion dollars, the largest for the month of July in yen terms since comparable data was available in 1996.

The surplus of primary income that shows interest and dividends from investments in overseas securities was up to 2.43 trillion yen, or roughly 16.9 billion dollars. A weaker yen increased the value of dividends from overseas subsidiaries.

Japan posts smallest current account surplus for July on record | NHK WORLD-JAPAN News

Japan's current account balance has gone into the black for the first time in two months, but surging energy prices made it the smallest surplus for July on record.

www3.nhk.or.jp

 

[ILC]

Contrary to popular belief, Japan is actually not that export-dependent. Like other G7 countries, domestic household consumption account >50% of their GDP and thus their economy is more sensitive to consumer sentiments. For many years they say that Japan's consumer sentiment has been weak due to an aging population and deflation, that's why their policymakers are keen to push up inflation to ~2%.

View attachment 880164

List of largest consumer markets - Wikipedia

en.wikipedia.org

View attachment 880170​

Japan has ‘once-in-lifetime’ chance to end deflation, says departing BoJ official

Outspoken reflationist Goushi Kataoka backs bold easing measures to capitalise on rising prices globally

www.ft.com

In fact, Japan runs a trade deficit more often than a trade surplus.

View attachment 880165

Real Net Exports of Good and Services for Japan

Graph and download economic data for Real Net Exports of Good and Services for Japan (JPNRGDPNGS) from Q1 1994 to Q1 2024 about Japan, exports, Net, goods, services, and real.

fred.stlouisfed.org

However, Japan still has large NIIP and current account surplus over the years due to investment income from overseas. Their investment income is funding their imports from a balance of payment perspective.

View attachment 880168

Japan Current Account Balance, 1996 – 2023 | CEIC Data

Japan Current Account recorded a surplus of 14.2 USD bn in Apr 2023, compared with a surplus of 7.5 USD bn in the previous month.

www.ceicdata.com

Japan posts smallest current account surplus for July on record | NHK WORLD-JAPAN News

Japan's current account balance has gone into the black for the first time in two months, but surging energy prices made it the smallest surplus for July on record.

www3.nhk.or.jp

How is it that China's retail sales are the same as the USA but services are much larger in the USA? I guess the USA has fake GDP and China's services are mostly gray area.

 

[casual]

Contrary to popular belief, Japan is actually not that export-dependent. Like other G7 countries, domestic household consumption account >50% of their GDP and thus their economy is more sensitive to consumer sentiments. For many years they say that Japan's consumer sentiment has been weak due to an aging population and deflation, that's why their policymakers are keen to push up inflation to ~2%.

View attachment 880164

List of largest consumer markets - Wikipedia

en.wikipedia.org

View attachment 880170​

Japan has ‘once-in-lifetime’ chance to end deflation, says departing BoJ official

Outspoken reflationist Goushi Kataoka backs bold easing measures to capitalise on rising prices globally

www.ft.com

In fact, Japan runs a trade deficit more often than a trade surplus.

View attachment 880165

Real Net Exports of Good and Services for Japan

Graph and download economic data for Real Net Exports of Good and Services for Japan (JPNRGDPNGS) from Q1 1994 to Q1 2024 about Japan, exports, Net, goods, services, and real.

fred.stlouisfed.org

However, Japan still has large NIIP and current account surplus over the years due to investment income from overseas. Their investment income is funding their imports from a balance of payment perspective.

View attachment 880168

Japan Current Account Balance, 1996 – 2023 | CEIC Data

Japan Current Account recorded a surplus of 14.2 USD bn in Apr 2023, compared with a surplus of 7.5 USD bn in the previous month.

www.ceicdata.com

Japan posts smallest current account surplus for July on record | NHK WORLD-JAPAN News

Japan's current account balance has gone into the black for the first time in two months, but surging energy prices made it the smallest surplus for July on record.

www3.nhk.or.jp

Japan is cought between the US raising interest rates and China cutting rates.