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2025-12-18 02:00:42
[Amova Asset Management: Japan's GDP Growth Expected to hover between 0% and 1% by 2026] Naomi Fink, Chief Global Strategist at Amova Asset Management, noted in a report that Japan's GDP growth is expected to hover between 0% and 1% by 2026, with potentially large quarterly fluctuations reflecting the sensitivity of the Japanese economy to changes in external demand and domestic confidence. Overall CPI is likely to fall below 2%, while weak real wage growth could dampen a strong recovery in consumption. Amova expects the Bank of Japan to raise interest rates to 1% by 2026, after which it will pause rate hikes. Amova added that the Japanese stock market is supported by corporate governance reforms and technology-related investment trends, but the market may experience a period of consolidation before the next earnings-driven rally. Earnings growth for TOPIX constituent stocks is likely to remain in the single digits in the first half of 2026, accelerating in the second half as tariff uncertainty subsides and global investment and fiscal stimulus measures take effect.
