Outlook on Japan in 2023


January 05, 2023


Lazard's Outlook series provides a forward-looking view, over the short, medium, and/or long term, of asset classes, sectors, regions, or countries from the view of Lazard Asset Management. In this edition, LAM portfolio managers share their outlook for Japan in 2023. 


  • 2022 was challenging for markets, including Japan which appeared, at first blush, to be insulated from the issues affecting the rest of the world, judging by local currency returns.

  • While global attention pivots from inflation to recession, Japan has experienced green shoots of domestic growth as the country embraces economic reopening in a post-pandemic era.

  • Following the Bank of Japan’s surprising decision to widen the yield curve control band by 25 basis points, next steps may include an exit from the negative interest rate policy and further normalization.

  • Despite near-term headwinds, Japan’s long-term outlook is one of optimism — and potential — as growing secular trends, an improved competitive position (thanks to a weaker yen), attractive valuations, improving profitability, and a focus on shareholder return are all signs of a favorable future.

Click here to read our Outlook on Japan in 2023. 

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