Japan gains footing for future GDP growth

Significance

In addition, the government approved the nation’s first COVID-19 vaccine. Both announcements sent the Tokyo Stock Exchange indices to thirty-year highs. However, deflation remains a problem and wages are stagnant.

Impacts

• Fiscal spending will support small businesses and employees.
• Full recovery will depend on the rate of vaccine roll-out, which is still in the planning stage.
• Demand for urban services dependent on office workers will remain weak.
• Demand for office property is likely to recover, but not to former levels.