Japan - Is This the Start of a New Economy?

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Japan's economy just celebrated good news last week as base wage growth surged impressively. This positive data has strongly revived expectations on financial markets that the BOJ will continue raising rates at the upcoming December meeting. If the BOJ continues this hawkish path, it will be the first time since 1989 that the BOJ raises rates 3 times within 1 year.

However, Japan's economy has quite a few variables for the BOJ to confidently raise rates. And most importantly, any surprise decision by the BOJ has the potential to shake up the global economic landscape — perhaps even more than Fed policy decisions…

In addition, the standout point last week was Japanese Prime Minister Ishiba's statement on a support package for the semiconductor industry here. With this support package, Japan officially re-enters the race to claim position on the global semiconductor supply chain map — an industry where Japan once dominated in the 1980s - early 1990s.

Only 2 weeks left before the BOJ's final meeting of 2024 (Dec 18-19), Viet Hustler dedicates this weekend's macroeconomics article to discuss the revival potential of the 2 key sectors mentioned above in Japan:

1 - Macroeconomics: Do the data support BOJ raising rates at the upcoming meeting?

• …. and what is the impact of BOJ decisions on the global economy?

2 - Technology: Can Japan revive its glorious past chip manufacturing technology…

• And why is technology revival important for Japan's economy at the current time…

All will be discussed in detail in this article.

Disclaimer: Some content below is only the author's subjective opinion and is not investment advice!