Categories
Japan
It’s tough to grow when consumers don’t spend

Japanese Consumer Spending Has Been Flat for 20 Years


chart-japan-consumption-768x480


The Japanese government introduced a new fiscal stimulus plan in early August in hopes of spurring economic growth. This plan was Japan’s 20th round of fiscal stimulus in the last two decades — yet economic growth has remained stagnant. One of the main reasons is low consumer confidence and spending, which has been essentially flat for the past 20 years at just below ¥300 trillion. Contrast that to U.S. consumer spending and it’s easy to see why the Japanese economy has struggled to expand. Nevertheless, some companies have large market share in the Japanese consumer market and continue to grow that share, providing select opportunities to active investors.



This is the headline for the Newsletter promo. Customize the message.

Never miss an insight

The Capital Ideas newsletter delivers weekly investment insights straight to your inbox.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
On or around July 1, 2024, American Funds Distributors, Inc. will be renamed Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.