Japan's economic outlook: slow growth - Nomura

Analysts at Nomura explained that conditions on Japan’s labor market have tightened even though growth in the Japanese economy has been low.

Key Quotes:

"If this seemingly contradictory pattern turns out to be caused by Japan’s demographics, we will have to accept it as an assumption to a certain extent. However, we also have to accept that the ending of the emerging economy boom has made growth in global demand hard to envision."

"Faced with these conditions, the thrust of our Japanese medium-term economic outlook this year has been for a low-growth scenario under which growth in the global economy is low, but nevertheless continues to grow. A low-growth scenario is one where, to put it bluntly, many variables will stay flat over the next decade."

"Looking back, however, there have not been that many instances in the past where the same economic conditions have prevailed for 10 years. Of course, even if the economy were to break out of low growth on the upside or downside, it is difficult to forecast when this might happen."

"For our part, we will have to keep a close eye on moves on the downside and the upside while maintaining our main scenario of low growth."