Japanese firms overseas expect better financial results

A survey by the Japan External Trade Organization has found that firms doing businesses overseas expect better financial results this year.

The survey was conducted from August to September, with 7,173 companies operating overseas responding. Of these, 64.5 percent said they expect operating profits in the black, up 1.9 points from the responses for the same period last year.

The latest finding shows business has recovered to about the same level as before the pandemic in 2019, when the figure was also 65 percent.

The recovery is also being seen in the service industry, which was hit especially hard by COVID restrictions. More restaurants and retailers overseas expect profits.

But the picture is different for Japanese firms in China.

Nearly 42 percent said their financial results would worsen, while only 26.8 percent said they would improve.

JETRO Chairman Sasaki Nobuhiko discussed the findings at a news conference on Thursday. He said, "The more aggressively China imposes its zero-COVID policy, the heavier the burden on the global economy. So we need to keep watching what policies China takes as infections start rising again."

Beijing eased some of its anti-coronavirus restrictions earlier this month to help the economy. But the authorities have made it clear they are sticking with their zero-COVID policy.

Source: https://www3.nhk.or.jp/nhkworld/en/news/20221125_11/