Over 70% of major Japanese companies, including Toyota and SoftBank, are optimistic about economic growth in 2024, according to a Kyodo News survey. This positive outlook, higher than last year’s 56%, is driven by an expected rise in consumer and capital spending, despite inflation concerns. The OECD predicts Japan’s economy will grow by 1.0% in 2024, a deceleration from 1.7% in 2023. Key growth drivers include a rebound in private consumption and spending by foreign visitors. In the semiconductor sector, significant investments like Taiwan Semiconductor Manufacturing Co.’s USD8.6bn plant are anticipated. While most firms foresee growth, 22% predict no change, and 3% a mild contraction, citing consumer spending declines and global risks.
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