Japan surprises once again: 2.8% growth in the last quarter! 🚀 While Europe - especially Germany - is talking about recession, the economy in Tokyo is booming. But why is the stock market reacting so cautiously?
Exports drive Japan, consumption weakens
Japan's growth engine is running at full speed - thanks to strong exports. Companies are investing heavily, but the population is holding back on consumption. Higher prices and stagnating wages are weighing on households. A familiar picture? Things look even gloomier in Germany: The country is struggling with shrinking economic output.
The yen as a risk
With the good figures, the yen is rising, which poses problems for Japan's export industry. More expensive goods abroad could dampen growth. Markets are also speculating on interest rate hikes by the Bank of Japan - another question mark for investors.
Investors beware!
Anyone investing in Japan should take a close look: Can domestic consumption recover? Or will growth remain dependent on exports alone? Shares such as Sony $6758 (+1.32%) , Toyota $7203 (-0.72%) or Panasonic $6752 (+2.7%) could benefit - but only if the economic climate stabilizes.
What do you think? Is Japan on the right track or just a flash in the pan? And what does this mean for Germany?
Sources: Manager Magazin, Statista,
Picture: ChatGPT
