Cityscape view with skyscrapers and city lights at night, Tokyo, Japan. Photo: AFP

Goldman Sachs analysts forecast 1.7% quarter over quarter annualized real GDP growth for the first quarter this year, up from 1.2% in Q4 2016. It would mark the fifth-straight quarter of sequential growth – the longest run in more than a decade.

Other Japan notes from GS:

  • US withdrawal from TPP would allow Japan to avoid reduction in domestic agricultural production…
  • But this is outweighed by lost opportunities to increase exports of industrial good to the US and to increase domestic production
  • Japan is preparing to establish TPP 11 – the same trade deal, minus the US – in hopes of enticing Washington to come back eventually. Good luck
  • Restrictions on working hours could hamper growth given labor shortages, though they are unlikely to have a major negative impact on growth as many industries will initially be exempt
  • Household inflation expectations surged in April

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.