Japan | Society
6 Predictions for Japan in 2023
Let’s see which ones will turn out to be correct at the end of the year!
It’s always fun to do a prediction at the beginning of a new year and then review what turned out right and what didn’t end of the year.
What’s in store for Japan in 2023?
I share my list of financial, social, and demographic trends that I believe will continue in 2023 in the event of some fundamental shock (like COVID-19).
#1 Inflation continues in post-deflation Japan
Yes, inflation was a massive problem everywhere in the world in 2022 due to a combination of multiple factors — excessive money supply, pent-up demand, disrupted global supply chains, the Ukraine war, and so on.
But one has to remember that Japan has been stuck in deflation for a long time. So, imagine what a little inflation does to Japan — which, according to Bank of Japan chief Kuroda, had become so accustomed to stagnant wages and low prices — had become stuck in a “deflationary mindset.”
The ultra-easy monetary policy of the Bank of Japan of recent years was precisely meant to stimulate the Japanese economy into mild inflation.
