JAPAN

摘要

Earlierthis month Japan completed a free-trade deal with the European Union which is set to remove tariffs on almost all goods which are traded between the two areas. Despite the fact that the specific terms of the agreement are yet to be finalised, most commentators are of the opinion that it is likely to bring about significant benefits to the Japanese car industry as exporters gain better access to a market of over 700mn consumers with a combined GDP of over US$16tn. Latest trade data for May shows continued strength in the Japanese external sector, with exports climbing by 14.9% (y-o-y), the fastest increase in over two years. Elsewhere, other key economic indicators also offer encouragement for policymakers, with the Q2 Bank of Japan Tankan survey showing that confidence amongst big manufacturers reached its highest level in more than three years, and the central bank's output gap estimate rising once again in Q1, indicating that momentum continues to build as demand comfortably exceeds supply. The government upgraded its assessment for the economy in the cabinet office's monthly report for June, warning against global uncertainty but nevertheless stating that Japan is following a path of moderate recovery as consumer spending and capital investment improve.