Some days before leaving for Tokyo, I fretted about the state of the global economy, and Japan’s economy in particular.
In my January 30 post, GDP Blues, I mentioned David Resler, Managing Director & Chief Economist at Nomura Securities International, Inc., predicting that Japan’s 4th quarter GDP for 2008 could drop 9 pct or more.
That number, announced today, shows GDP contracted at an annual rate of 12.7 pct, Japan’s worst quarterly drop since its economy shrank at an annual pace of 13.1 pct in the first three months of 1974.
Exports are key, of course, but judging by what I’ve seen of consumer demand (or the lack thereof) in Tokyo, the slump is likely to continue for some time.
Even in osharen na Azabu Juban, 100 yen stores are very much back in vogue.