Japan Economy Extends Growth Period Amid Inflation and Record Corporate Profits

The Japanese economy has been experiencing an extended period of growth, lasting 74 months through July according to preliminary government statistics. This is highly likely to surpass the 'Izanami' boom from February 2002 to February 2008, which was the longest period of growth since World War II ended.

During this current expansionary phase, Japan's nominal gross domestic product has increased due in part to inflation and the yen's sharp depreciation. Corporate profits have also reached record highs.

However, with real wages failing to grow markedly, households are finding it difficult to feel the effects of the economic expansion.