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Daiwa Chief Research Economist: The depreciation of the Japanese yen has caused a net drag on the Japanese economy

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Keiji Kanda, an economist at Daiwa Institute, stated that for every 10% depreciation of the Japanese yen against the US dollar in the past year, the net drag on Japan's real GDP growth was about 0.14 percentage points. Additionally, price transmission, Middle East tensions, Trump tariffs, and a decrease in Chinese tourists have suppressed the positive effects of the weakening of the yen. Currently, the exchange rate of the yen against the US dollar is hovering around 162.20.

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