Japanese economy likely tumbled again in Q4 2015 – Wells Fargo

By FXStreet On Monday, Q4 GDP data from Japan will be released. Analysts from Wells Fargo, expect a reading of -0.8%, after growing at a rate of 1% during the previous quarter.

Key Quotes:

“Abenomics, the combination of stimulative monetary and fiscal policy and limited structural reforms in Japan, has lost momentum.”

“After gaining some initial traction in the first few quarters of 2013, real GDP growth in Japan has been negative in four out of the past eight quarters. The first major international economic news next week will likely be that the Japanese economy tumbled again in the fourth quarter of 2015. Retail sales fell in two out of three months in the final period of the year, which suggests soft consumer spending figures. Trade may offset that somewhat as the soft domestic demand environment resulted in steep declines in imports.”

“We expect the saw-tooth pattern for growth to continue with fullyear growth figures of 0.6 percent for 2016,”

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Source:: FX Street