An encouraging growth outlook, nascent inflationary pressure, and ongoing market reform point to a positive outlook for Japan in 2024.
Japan’s tightening labour market is leading to wage growth for the first time in decades. This is encouraging as a potential indicator that higher inflation can persist.
Japan remains an outlier among developed market peers in terms of its accommodative policy stance. Any potential tightening of policy is a key risk to the 2024 outlook.
