Japan

Abstract

After Q3 2015's eventual 0.3% quarterly growth rate, the economy appears to have maintained modest growth into Q4 according to the available monthly data. But a significant threat to the economy could arise from financial market volatility and consequent upward pressure on the yen. Since the US Federal Reserve raised interest rates on 16th December the yen has appreciated by 3% against the US dollar and by over 5% on a trade‐weighted basis.