Japan growth slows in Q4 as economy shrinks 4.8% over year

I would try to act like it's a surprise, but it's not.

Even before Covid hit, Japan was in a stagnation with high debt. I hope this will be the wake up call necessary to get the economy back on track.

And yet this morning the Nikkei stock market hit a new high of over 30,000 for the first time in 30 years.

Dump truck loading and helicopter dropping money into corporations and financial institutions by quantitative easing and direct stimulus while ignoring the laboring public in a pandemic.

Who would of thought this would be the result?

Japans GDP grew in the October to December period marking the second consecutive quarter of expansion. Of course things were not good in 2020 but you could say that for any country.

Do expect the shrinking of GDP in most global countries for year 2020. Japan drops by ~5%, about half of UK's ~10%.

Strange though, the Nikkei index shot above 30,000, first time after its peak at 32,000 in 1990, then quickly started to keep dropping.

Something is awkwardly amiss. Perhaps something very devastating may really happen to global stock markets in the near future..

I believe a global economic reset is imminent. All economies except for China are having a very rough time.

Japan's economy IMHO cannot sustain this with the grey demographic swelling to bursting, suppressed demand for Japanese goods, woeful food security & domestic food production about to fall off a cliff from its already feeble approximately 25% - this translating to high levels of food imports/outgoings.

Not to mention the electronics industry being a mere shadow of the juggernaut it once was and China & Korea doing their best to take more market share of the auto industry. Ship manufacturing and steel have already sailed it seems.

This is a perfect economic storm the likes of which Japan has NEVER seen.

That all said, fear not! Japan historically, only makes significant changes when struck by disaster and hardship and it is looking like not only Japan, but globally, a good, much needed dose of change is en route.

Buckle up people - this might get a bit bumpy.

Actually, Japan is doing great if you look at the double digit growth over the last two quarters.

Funny.... if folks look at Bloomberg, it's a hell of a lot more positive!

https://www.bloomberg.com/news/articles/2021-02-14/japan-s-economy-clocks-double-digit-growth-for-a-second-quarter

Japan’s economy clocked another quarter of double-digit growth and finished the pandemic year in better shape than initially expected, signaling potential for a more sure-footed recovery once a damaging state of emergency ends.

I think the outlook is positive. Nikkei at this minute @ 30,018 points...highest since 1990! Throw most of your spare cash in the Japanese stock market, the rest in Bitcoin. Watch the boom in 2021!

Yes Japan will be fine, overall Asia took less of a hit from Covid compared to US and Europe. Money inflows into Japan and other Asian markets has been very high recently. Keep in mind too that the actual economy and the stock markets are almost never correlated. Stock valuations are mostly priced on future potential not necessarily past performance. If inflows keep coming in and Nikkei hitting highs then the perception from smart money is this will continue. Sure we will get pullbacks here and there which are normal and healthy but overall, stay LONG.

For some people 4.8% may not sound like a lot. But 4.8% of something huge is also huge!

I would like to see a real Yen value verses the dollar. ¥150 = $1.00

Oct.-Dec. was good because of Go-To-campaign. But it will sink Jan.-March due to State of Emergency. Japanese stocks rose hoping the end of the corona by the vaccines. When the corona is held down, the expectation will end and real economy will matter after that.

Well, this is what happens when give perks to 1% of LDP/Komeito lobby instead of 99% of real economy !

Even I can’t understand why the Nikkei225 extraordinarily celebrates such data with highest values ever (since the bubble in the ‘90s)

@matej nahh. 1$=105 yen is fine.

¥160 = $1.00 In reality