Japanese Economy On A Recovery Path While Other Countries Still Worry The Global Slowdown
According to the reports released by a popular Business Magazine on Monday, the economy of Japan led by the robust reconstruction and spending of the consumers is still recovering after the country was hit by an earthquake only last year. The government reported on Monday that there are still signs that show a slowdown in the economies of the global market. This factor of slowing down of economy is spreading and it poses a threat to the market all over the world.
The report:
The government of Japan in its monthly report shared with Business magazines has stuck to the assessment of exports and private consumption thereby its overall economy for the month of July. The report has strengthened the warning on the weakening of the Chinese or the US economic data as the exports of Japan begin to slow down with time. The cabinet office in their latest reports stated that even the economy of the country is recovering moderately with help from the demands of reconstruction; there are some problems that continue to prevail. The report arrived soon after the Bank of Japan had also made its assessment of the economic conditions. There are some technical changes that have been made to the operations in the money market and schemes for the purchase of bonds so that more and more money is fuelled in the economy of the country.
The condition of the market:
The economic slowdown in the markets of China and the United States along with the crisis of the sovereign debts in Europe could definitely have an impact on the economy of Japan. Such slowdown in the world wide market of economy disrupted the financial markets in the country of Japan as has been stated in the reports from the Cabinet Office of Japan. The government in their assessment reports has mentioned the fact that the exports of the country are showing positive signs of recovery. According to a Cabinet Official, there is not much of a reason to worry about the economy of the country. This was said in spite of the fact that the data arrived from the first half of the month of June showed that the exports to Asia and the United States have weakened.
The standpoint of Japan:
The economy of Japan is still now expected to perform much better than most of the well developed nations of the world this year mainly due to the high demand of the domestic markets. But according to a poll from Business magazines in the earlier part of this month, the analysts have slashed the forecasts for the factory outputs due to the pronounced slowing down of the global economy. Economists involved with the poll of Business magazines indicate the fact that the economy of Japan is in most likely to grow about 2.2% in the year till the month of March next year. The economy of Japan that is ranked third among all the economies of the world has shown a slightly better 2.3% pace of growth in a similar survey conducted by a poll from Business magazines.
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