Two economists flipped their forecasts for Japan’s economy to show a contraction in 2024 a day after first-quarter gross domestic product data were revised sharply lower, highlighting the Bank of Japan’s quandary as it weighs the case for a rate hike.
Economists at BNP Paribas and SMBC Nikko Securities slashed their growth projections to predict 2024 will mark Japan’s first annual contraction since the pandemic in 2020, according to reports Tuesday. BNP’s Ryutaro Kono predicts GDP will shrink by 0.4% while SMBC economists led by Yoshimasa Maruyama said the retreat will be by 0.3%. Both previously predicted slight expansions.
Source: Bloomberg
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