This is according to forecasts from the latest Reuters poll on Japan
- Q1 annualised GDP forecast of -3.7%
- Q2 annualised GDP forecast of -6.1%
- BOJ's next move is seen as expanding stimulus (31/40 economists surveyed)
The GDP forecasts aren't at all too grim all things considered, especially when you see the likes of Goldman Sachs calling for a record 25% drop in Q2 activity. But as I have mentioned last week, take that number with a pinch of salt because of it being annualised.
In any case, the forecast for a further two quarters of contraction in Japan will put the country on the path of three straight quarterly falls - the first time since 2010-11.
As for the BOJ prediction, there is the expectation for the central bank to ease later this month from 16 among the 31 economists who expect them ease further next.
