90% of businesses see Japan’s economy grow in 2022

Ninety percent of large Japanese companies expect the country’s economy to grow in 2022, with the hope that the impact of the coronavirus pandemic will ease, an investigation by Kyodo News.

The survey of 111 companies, including Toyota Motor Corp. and Sony Group Corp., also showed that companies are increasingly joining global efforts to reduce greenhouse gases and strive to ensure economic security amid heightened US rivalry. Chinese, with a focus on supply chains for chips and energy resources.

The survey found that 75% of companies expect moderate economic growth next year, followed by 15% who said the world’s third-largest economy will expand even faster in 2022.

Five percent said they expected economic conditions to remain unchanged, with no company forecasting a moderate decline or contraction.

With multiple responses cleared, 93% of companies planning economic expansion said they base this belief on progress in COVID-19 vaccinations, while 83% cited a pickup in private consumption and 72% hoped for easing. restrictions related to coronaviruses on the Activities.

Despite the optimistic business outlook, concerns remain about the pandemic, with many people remaining unvaccinated and the highly contagious delta variant leading to an increase in cases of infection nationwide, analysts say.

If the infection situation does not improve as hoped, the recovery in private consumption could be delayed and supply chains could be disrupted, survey respondents said.

As for the current state of the Japanese economy, 56% of companies said it was stable and 40% said it was expanding moderately.

Twenty-six percent of companies said they expect quarterly sales to return to pre-pandemic levels in 2022, and 16% expect a recovery to materialize in 2023 or later.

Some companies have fared well despite the global health crisis, with 16% saying sales have already returned to pre-pandemic levels and 5% seeing no decline in sales.

As Prime Minister Yoshihide Suga’s administration promotes efforts to tackle climate change, maintaining the goal of achieving carbon neutrality by 2050, 94% of companies said they are taking action to reduce carbon dioxide emissions.

The companies interviewed said they believe it is important to promote energy-saving measures in business activities and to set concrete targets for reducing greenhouse gas emissions.

Many companies have also said they need to protect supply chains to ensure the supply of high-tech parts such as semiconductors as well as energy and mineral resources when the United States and China prevail. mutually export sanctions and controls.

The government has also focused on enhancing domestic development and production of advanced semiconductors to reduce the country’s dependence on foreign manufacturers amid the global chip crisis.

Kyodo News conducted the survey between early July and early August, targeting large companies.

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