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Japan Information Technology Q1 2020

Japan Information Technology Q1 2020

Key View:

The Japanese IT market and industry is set for a strong year in 2020 when the Tokyo Olympic Games will boost demand,but from 2021 onward the growth outlook is modest due to economic challenges such as slow GDP growth and negativedemographics. These challenges will however create pockets of opportunity where Japan could be a global leader, such as theintegration of advanced automation and intelligent assistance systems in the manufacturing and services sector due to labourshortages, while the aging population could also see the country become a leading adopter of healthcare related IT systems. Themain downside risk is for the US dispute with China about trade and industrial policy to negatively impact Japan's important exportindustries and expose vulnerabilities, such as the high debt burden and lack of policy space for a response to external shocks.

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