The new year is just around the corner, and it seems that a large proportion of Japanese consumers are not sanguine about the prospects for the world economy or their own households in 2020. This is according to a survey recently conducted by Hakuhodo Institute of Life and Living on Japanese people’s sentiments on the economic outlook in the coming year. The survey also asked people about the things they plan to spend their hard-earned yen on.
According to the online survey, which received valid responses nationwide from 3,900 people, aged 20 to 60, 41.5% of respondents said that the world economy “will become worse” in 2020. This was an increase of 10 percentage points compared to last year’s survey and the highest percentage ever recorded in the annual survey, which was first conducted in 2015. At the same time, a record low of 11.7% of people said that the economy “will get better” next year. The outlook for “no change” was 46.8%, falling under 50% for the first time since the survey started.
People gave a wide range of reasons why they felt the world economy would worsen, in the free-response question. The most often cited were: the fallout from the October 1st consumption tax increase and worsening international relations, including China-US relations.
People surveyed were similarly pessimistic about prospects for their own household. Thirty-seven point eight (37.8%) of people said that they expected their household financial situation “will get worse”. This was a record high for the five-year old annual survey, surpassing the previous high of 32.1% recorded in 2015 (on the outlook for 2016). People gave a number of reasons for why they felt their household situation would likely get worse:
- My household income is going down.
- “My base salary isn’t likely to go up, and I don’t think I’ll be able to work overtime.”
- “The company where I work hasn’t given raises in a long time, and they are decreasing working hours more and more.”
- Negative effects of the consumption tax increase
- “I don’t plan on changing my lifestyle, but the consumption tax increase is putting pressure on my finances.”
- Prices are going up.
- “I think transportation costs are increasing, so it’s likely going to affect food prices.”
- The cost of raising/supporting children is rising.
- “I have to send money to support by child at university.”
- Less work available. / Uncertain prospects for changing jobs.
- “I plan on quitting my job.”
- “My company is probably not going to renew my employment contract.”
What do you plan to spend money on next year?
The survey also asked people what they plan to spend money on in 2020. The Top 15 answers were:
- Travel
- Savings
- Hobbies
- Regular meals
- Eating out
- Educational expenses for children and/or grandchildren
- Leisure (excluding travel)
- Getting ready for retirement/old age
- Health and relaxation
- Investing in stocks
- Beauty care
- My own education
- Going out
- Dating
- Events / concerts
How do you feel about 2020?
How do you feel about 2020? Please comment below.
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Source: Hakuhodo press release, November 2019, in Japanese
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