BNP Paribas: Weak yen and alternative sourcing support Japan's import costs, domestic demand expected to remain strong
- BNP Paribas economists pointed out that although tensions in the Strait of Hormuz have eased, Japan's import prices are expected to remain high. This is mainly due to alternative purchases of more expensive US crude oil, soaring insurance premiums, and the continued rise in input costs driven by a weak yen.
- Domestic demand is expected to remain robust, reflecting the supportive effects of the artificial intelligence investment boom and a strong stock market.
- As the situation in the Middle East improves and geopolitical uncertainties fade, Japan's overall demand may remain strong in the second half of this year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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