The Strategist

Experts: Japan's GDP could shrink by 0.3%



02/28/2022 - 09:50



In the worst-case scenario, as a result of some Russian banks disconnecting from the SWIFT international interbank payment system, Japan's GDP may drop by 0.3 percent.



pixnio
pixnio
In the worst-case scenario, as a result of some Russian banks disconnecting from the SWIFT international interbank payment system, Japan's GDP may drop by 0.3 percent.Ρ„One of Japan's major securities and financial businesses, Nomura Securities, issued such a forecast on Monday.

Export and import restrictions, as well as growing oil prices, are expected to contribute to the drop, according to the report. According to experts, a 0.1 percent decline in Japanese supplies as a result of Russia's lower purchasing power would diminish Japanese GDP. An increase in oil prices to $115 per barrel would reduce it by 0.2 percent more.

Japan's GDP will drop by nearly 1.5 trillion yen (about $13 billion at current exchange rates). Nomura Securities specialists warned at the time that they had taken the most negative interpretation of the prediction.

Fumio Kishida, Japan's prime minister, declared on Sunday that his country had joined the Western sanctions against Russia in the financial sector. The European Union, the United States, the United Kingdom, and Canada had already stated their desire to disconnect some Russian banks from the SWIFT system, as well as freeze the Russian Central Bank's assets and prohibit Russian businessmen from using assets in those countries' markets.

source: nomura.com




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