There has been plenty of concerned talk around the state of the world’s first and second largest economies as they butt heads in a trade dispute, but number three on the global list is doing quite well.
Japan, the world’s third largest economy, has a GDP of $4.9 trillion (USD) and in early December 2019, marked its fourth straight quarter of expansion. This growth had been supported by consumer purchases ahead of a tax hike in October.
"According to revised government data, Japan’s economy grew at an annual rate of 1.8% in July-September 2019, better than the modest annual pace of 0.2% it gave as an earlier estimate. These updated results from the Cabinet Office, reflect higher capital investment. Among the amended changes in the new data was that private consumption increased more than initially reported, 0.5% instead of 0.4%, while exports did not fall as drastically as first expected."
(Image via Avcorp Industires Inc.)
Canadian companies working with Japan:
Avcorp Industries Inc. (TSX: AVP) - Aerospace manufacturer recently entered into a long-term business collaboration with Fuji Heavy Industries Aerospace Ltd.
Imperial Metals Corporation (TSX: III) - Canadian miner who operates its Ruddock Creek Project by way of a Joint Venture with, Mitsui Mining and Smelting Co. Ltd.,Itochu Corporation, andJapan Oil, Gas and Metals National Corporation (JOGMEC).
Japanese companies in Canada:
Capcom Co. Ltd. (OTC: CCOEF) - With an office in Vancouver, BC, this international video game developer has seen its tock steadily climb over the past year, especially at the end of the summer.
Daifuku Co Ltd. (OTC: DAIUF) - Provides solutions for logistics systems and material handling equipment.
(Capcom's Japanese website.)
As the Japanese government looks ahead, it stated that its fiscal package will boost growth by 1.4 percentage point over time. However, economists are split on the validity of that figure, especially given how long it takes government money to reach the economy, though many agree that the package makes it easier for the Bank of Japan to hold off on extra stimulus.
A large shadow of doubt continues loom over the global economic outlook given the China / US trade dispute, Tokyo’s own trade spat with Seoul has cut spending by South Korean tourists in Japan, weighing on overall growth.