Earlier this weekend, we presented a rather apocalyptic view on the Japanese endgame courtesy of BofA's resident bears, Michael Hartnett. To balance that, here is a far more cheerful and optimistic view on the land of the rising sun, from Chetan Ahya, Chief Asia Economist at Morgan Stanley.
A Revitalised Japan
If you’ve visited Japan recently, you have probably felt the palpable buzz that has taken over. The airports are busy, restaurants are full and you see many more business travelers. The buzz is showing up in the data. Nominal GDP growth reached a 32-year high in 2023. Equity markets have notched multi-decade highs. ROE and productivity growth have been trending upwards. Corporate sector vibrancy is returning, and animal spirits are reviving.
