Discussions around Japan by companies slump as GDP growth slows, yet posted jobs silver lining in Q1 2021, says GlobalData

Japan, the world’s third-largest economy, witnessed a 4.8% contraction in last year due to COVID-19, its first annual contraction in 11 years. This reflects in the earnings transcripts of the companies, in which discussions around Japan decreased by around 13% in 2020, reveals GlobalData, a leading data and analytics company.

According to GlobalData’s Filing Analytics Platform, the earnings transcript mentions of other geographies such as the US and China increased in 2020 compared to 2019.

Rinaldo Pereira, Senior Business Fundamentals Analyst at GlobalData, says: “Despite the Japanese government’s stimulus package, company-wide discussions around the East Asian country seem to have withered. In addition, the number of companies with mentions of Japan reduced from 786 in 2019 to 642 in 2020.”

GlobalData expects Japan’s real GDP growth to continue to be fragile until 2026, post-recovery in 2021, due to restrictions aimed at containing another wave of COVID-19 pandemic.

Mr Pereira concludes: “In 2020, the Japanese government revealed stimulus packages focused on digitization, business loans and green initiatives. Looking at the bright side, companies in Japan seem to have reacted positively to the recent US$708bn stimulus package with job postings already being up by around 13% in Q1 2021 (until 11 February) compared to the same quarter last year. Japan’s real GDP is also likely to gradually recover in 2021, up by around 2.6% compared to 2020.”

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