Will Japanese Consumer Spending Increase?
An article by Bloomberg forecasts higher consumer spending by Japanese, but the initial evidence offered isn't convincing. The author cites higher interest on savings accounts; but this will only put an additional $13 billion at consumers' disposal, hardly a big amount in a $5 trillion economy. He also mentions a World Bank estimate that consumer spending will help boost Japan's GDP growth to 2.3% this year from 2.2% in 2006, which is not all that notable.

The more convincing argument he offers is the coming spurt of retirements: "The Japanese workers reaching retirement age over the next three years represent 5.4 percent of the population, and have assets totaling ¥130 trillion, almost 10 percent of all personal financial holdings, according to Dai-ichi Life Research Institute." Whether the demographic blip that will boost retirements -- and spending -- for the shorter term can be sustained is open to question; but at least for now it should help prop up consumer spending and the economy.