Monday, February 21, 2011

Japan's Economy gains Momentum

In parts of the world, apart from the Arab world where there is a wave of revolution passing by, countries like Japan have other issues to tackle. Since the disastrous Mortgage led Credit crisis in 2007, Japan has had a tough time like many of its G20 counterparts. Things have been quite bad for world's second largest economy, that had seen recession and took measures to tackle it.

Japan's Finance MinisterYoshihiko Noda
And as reported from TOKYO today, things have stated to look good now for the country. It has been learned that Japan's cabinet has upgraded the countries outlook and this is for the second consecutive month that this has happened. Out led exports have increased and the economy is performing, although high inflation may persist to follow the trail to recovery, due to high oil and food prices and increasing global tensions related to the Arab world led revolution.

"(Japan's economy is) showing signs of picking up and emerging from a lull," the government report for February said. Japan's gross domestic product is likely to resume growth in January-March after shrinking in the previous quarter due to a dip in consumption following the end of government subsidies for car purchases. Industrial output in Japan increased 3.3 percent in December from the previous month and was forecast to gain 5.7 percent in January, suggesting Japan is on a positive recovery track, despite Japan's gross domestic product falling an annualized 1.1 percent in the October-December quarter.

Japan's Prime Minister Naoto Kan's
But instead what is more surprising to me is that although the economy as said by the minsters and PM Kan, there are no reports and concerned news on are there going to be an increase in interest rates, which are still near to 0%, inflationary pressures are mounting and guess vote, half of Japan wants their PM to quit. So a twist and turns are to follow and radio australia news also had something rlated to a poll, as the Democratic party is loosing popularity and the share of popularity has fallen to 20%. So Japan's economy can have a rebound, but the government is under pressure.

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