Reuters Poll: Japan firms see economy recovering to pre-COVID level in FY2022

Anil Panchal FXStreet

Reuters came out with the September 01-10 survey details of over 260 Japanese companies, out of 500 canvassed, while saying, “A majority of Japanese firms say the world's third-largest economy will recover to pre-pandemic levels in fiscal 2022, with many anticipating they will continue to face COVID pains until next year or later.”

The poll also cites contradiction between the Japanese government’s optimism and corporate fears on the GDP. That said, the Japanese government anticipates the pre-covid GDP to return later in 2021.

Key quotes

The Corporate Survey found a slim majority said the economy will return to pre-pandemic levels in fiscal 2022, followed by one-third of respondents who anticipated recovery to such levels in fiscal 2023.

About 16% saw the economy's return to pre-pandemic levels to happen in 2024 or later.

In the survey, three-quarters of Japanese firms said they were negatively hit by the pandemic while 11% were affected positively. Nearly 60% said negative impacts will disappear in fiscal 2022. About 21% said such effects will fade away this fiscal year and the rest saw it disappearing after fiscal 2022.

Further clouding the outlook, half of Japanese firms said they were being affected by a global chip shortage, which six out of 10 firms said will be resolved next fiscal year.

Read: USD/JPY consolidates below 109.50 ahead of US retail sales

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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