People wearing protective masks, amid the coronavirus disease (COVID-19) outbreak, make their way at a shopping district in Tokyo, Japan, September 9, 2021. REUTERS\/Kim Kyung-Hoon\/File Photo<\/p>\n
TOKYO, Oct 15 (Reuters) - Japan's economy likely grew at a slower pace than previously expected last quarter and faces ongoing risks from soaring raw material prices and coronavirus-linked production and supply disruptions, a Reuters poll of economists showed on Friday.<\/p>\n
Government and central bank policymakers are hoping a jump in consumer activity put the export-reliant economy firmly on a recovery path after Japan saw COVID-19 case numbers plummet and made progress on vaccinations.<\/p>\n
Analysts, however, warned of risks such as an unexpected economic slowdown in China and semiconductor chip and factory parts shortages due to the pandemic.<\/p>\n
\"There is a risk problems due to supply chain disruption will last longer, putting downward pressure on the global economy,\" said Harumi Taguchi, principal economist at IHS Markit.<\/p>\n
Japan's economy grew an annualised 0.8% in the third quarter, weaker than a 1.2% expansion projected last month, according to the median forecast of 39 analysts polled.<\/p>\n
Growth is expected to accelerate to 4.5% this quarter as an end to state of emergency curbs boosts consumption and corporate activity, the poll showed.<\/p>\n
The projection was roughly in line with last month's forecast for 4.4% growth, the Oct. 6-14 poll showed.<\/p>\n
Parts shortages and factory disruptions in Southeast Asia have forced Japanese automakers to cut output in recent months, clouding the outlook for the export-reliant economy.<\/p>\n
Japanese companies also face rising raw material costs, aggravated by a weaker yen, that could erode margins.<\/p>\n
For a major importer of raw materials like Japan, rising input costs will worsen terms of trade, said Mari Iwashita, chief market economist at Daiwa Securities.<\/p>\n
\"That will lead to a decrease in corporate profits and real purchasing power for consumers,\" Iwashita said.<\/p>\n
The poll also showed Japan's new Prime Minister Fumio Kishida should focus on fighting the coronavirus pandemic, boosting digitalisation of the economy and stimulating domestic demand and consumption.<\/p>\n
Kishida, who became leader earlier this month after taking over from Yoshihide Suga as premier, on Thursday called a general election in which he is hoping to solidify his grip on power.<\/p>\n
Asked which areas the government should focus on under the new prime minister, 27 economists selected \"response to the coronavirus pandemic\".<\/p>\n
The next most popular picks were \"digitalisation in society and among firms\" and \"stimulate domestic demand and private consumption\", which were picked by 17 and 14 economists, respectively.<\/p>\n
Six economists chose \"social security issues\" such as the pension system and care for elderly and children. Three analysts picked \"foreign and security policy\", while none chose \"fiscal reform\".<\/p>\n
The poll allowed respondents to choose up to two areas.<\/p>\n
(For other stories from the Reuters global economic poll )<\/p>\n
Reporting by Daniel Leussink; Additional reporting by Kantaro Komiya; Polling by Shaloo Shrivastava, Md. Manzer Hussain and Devayani Sathyan; editing by Richard Pullin<\/p>\n
Our Standards: The Thomson Reuters Trust Principles.<\/p>\n
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Original post: <\/p>\n
Japan's Q3 growth forecast trimmed further on COVID-19 drag - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" People wearing protective masks, amid the coronavirus disease (COVID-19) outbreak, make their way at a shopping district in Tokyo, Japan, September 9, 2021. REUTERS\/Kim Kyung-Hoon\/File Photo TOKYO, Oct 15 (Reuters) - Japan's economy likely grew at a slower pace than previously expected last quarter and faces ongoing risks from soaring raw material prices and coronavirus-linked production and supply disruptions, a Reuters poll of economists showed on Friday. Government and central bank policymakers are hoping a jump in consumer activity put the export-reliant economy firmly on a recovery path after Japan saw COVID-19 case numbers plummet and made progress on vaccinations. Continue reading