Poor numbers of Japan prelim GDP q/q

The economy of Japan has contracted with today’s declaration of GDP q/q with lower demand & exports surrounding the economy. The numbers stood at -0.4% from the previous declaration of -0.2%, which comes to almost 2 times the numbers.

Despite the poor declaration several Asian markets have jumped to a record high of 7.3%, the major index of japan: Nikkei 225 stood at 16,037 in trading session but weakening the JPY in the FOREX market.

As the latest contraction have added to a cause of worry with the Prime minister & monetary policy decision makers for reviewing the policy to increase the inflation in the market. The major slowdown is due to monetary policy easing, which proved harmful to the economy & has added a new hindrance level.

 While the BoJ (Bank of Japan) has resorted to negative interest rate that holds the lending rate through certain cash rich companies that generally appears to low borrowing cost & certain cash rich companies. The growth rate has been stunted for the slow increase in wages that is inclined. While the several companies are still drawing that held an excessive capacity of growth & has viewed shrinking & aging the home market that has been a less attractive investment channel for the fastest growing economies in the world specifically in the Asian market. The Consumer demand has decreased than the expected forming a 5-year low in business investment

The BoJ needs to revive the tax in order to boost their inflationary pressure. Despite being the several loopholes in the market, the economy has increased to 0.3% last year as they are near to achieve $7 trillion economy by the year 2025. In regards to tax rate hike the corporate profits pressurize on the growth

While the JPY currency starts at a level of ¥113.6 against US $, while some of the major economist sees a potential growth in the economy while the traditional investors will stay away from the financial market volatility that will add to pressure on growth