Japanese Chemical Trader blog

Japan Chemical Trading Blog

GDP Gap and Business Confidence in Japan

It was reported in this weblog on May 23 that the GDP gap for the Q1 2014 had dropped to -0.3%, leading to a reduction in the negative gap.
However, on August 22, the Cabinet Office of Japan announced that the negative gap had widened again, to 2.2% for the Q2 2014. There has been a backlash against the last-minute demand before the consumption tax increase.

The announcement made by the Bank of Japan on October 8 also showed a similar trend.
The Bank of Japan expects that the GDP gap will further widen in Q4 2014. The economies of Asian countries, including Japan, have been experiencing obvious declines from around July and August, and none of our customers in Japan seems to be enjoying a boom.
It is hard to imagine that demand will increase in the 3 months from now.