Japan retail sales up on borders reopening

According to data released on Tuesday, retail sales in Japan marked an eighth consecutive month of annual growth in October. The reopening of Japan's borders has boosted retail sales from lifting of internal pandemic control measures this year.

Government data released Tuesday showed that October retail sales growth was 4.3%. However, the rise was below economists' median forecast of 5.0%.

In October 2022, the number of tourists in Japan more than doubled compared to September 2022. During the month of October, almost 500,000 foreign visitors visited the country. October was the first month when the Land of the Rising Sun became fully open to travelers.

The inflow of inbound visitors bolstered hopes for Japan's consumption-led recovery after an unexpected economic downturn in July-September. However, the biggest increase in travel spending may come later, as Japan still has few visitors from China, where strict border controls are still in place.