32.6 Trillion Reasons for Japanese Consumers to Spend

32.6 Trillion Reasons for Japanese Consumers to Spend

Japanese households are sitting on an unusually large pile of savings that could fuel spending once uncertainty from the Covid crisis starts to abate. Excess savings -- the surplus in cash and deposits over the trend level -- shot up last year, as consumers pared expenditure and pocketed most of the emergency assistance doled out by the government: Bloomberg Economics estimates it hit 32.6 trillion yen (5.9% of GDP) in the final quarter of 2020, up from 0.8 trillion yen (0.2% of GDP) a year earlier.

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