Companies in Japan optimistic about growth prospects in 2022

Recovering personal consumption driven by hopes that the COVID-19 pandemic will subside in Japan will allow Japan’s economy to grow in 2022, said 84% of major companies operating in Japan.

Based on a survey of 106 companies conducted by Kyodo News, these companies also expected business growth to be “moderate” in 2022, while a small minority (5%) expect to register “solid expansion” in the new year.

13% of companies predicted a “flat economy” in 2022, although none of the companies surveyed expect growth to contract.

Among the reasons cited for growth include a pickup in consumer spending (91%), a return to normal from the “unusual situation” caused by the pandemic (64%), the rise in capital investment (35%), and a recovery of the US economy (19%).

The overall percentage of firms forecasting growth for Japan’s economy is up from the 74% in a similar Kyodo News poll a year earlier.

READ: 18% of Japan’s companies plan to raise salaries by 3% or more

As part of the government’s plans to revitalise economic growth, and combat the impact of COVID-19 in Japan, Prime Minister Fumio Kishida has also announced an upcoming five-year plan to promote start-ups in the country, while he continues to urge companies to raise wages in 2022.