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The Call @ Hedgeye | April 30, 2024

Newswire: 6/30/2020

  • In Japan, singles are showing a surge of interest in matchmaking agencies during the pandemic. Something similar happened after the 2011 earthquake and tsunami: A year later, the number of weddings shot up. (The Economist)
    • NH: Marriage rates in Japan have been dropping for years. In 1970, there were over 1 million marriages, while in 2019, there were just over 500,000. See "Japanese Women Are Not Rushing to the Altar." But matchmaking services have seen a spike in activity since the pandemic. One agency reported a 30% increase in inquiries when compared to April of last year. Many agencies are rushing to meet demand by offering car dates, where clients can meet in socially distant parking lots. Supposedly, being cooped up in one's home makes the heart long for a companion.
    • But does this trend bode well for Japan's ailing marriage rate? Not necessarily. A similar rush to the alter happened after the 2011 tsunami. In 2012, the number of marriages in Japan increased by over 7,000. But this gain didn't last: The number of marriages dropped by over 8,000 the following year.
    • And while Japanese dating services are seeing a rise, what will happen to Japan's fertility rate? That's a tough question. A few months ago, we wrote a piece on the relationship between fertility and crises. See "Covid-19’s Impact on Fertility Rates.” We found that a disaster that keeps people home but causes relatively little damage increases the fertility rate. But disasters with severe damage and deaths make fertility go negative.
    • As a global disaster, COVID has caused massive numbers of deaths and wreaked havoc on the world economy. But Japan has been relatively spared by COVID’s destruction with just north of 900 deaths. Fertility rates will be determined by the Japanese either focusing on their nation’s good fortune or the dire circumstances of the world. In nine months, we will know which way they were thinking.