Research and analysis

Japan - impact of oil price falls

Assessment from the embassy in Tokyo of the impact of the recent oil price falls on Japan's economy.

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This article is no longer current. Please refer to Overseas Business Risk – Japan

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Recent falls in the oil price should benefit Japan’s economy overall, given its high level of imports. The trade deficit, in particular, should benefit – albeit with a significant time lag. But the fall risks making it harder for the Bank of Japan to hit its inflation targets, and could slow down investment in renewable energy

Published 9 December 2014