Thursday, 26th August 2010
In Business In Japan,
Japan's export growth continues slowdown
Figures have revealed that export growth in Japan has slowed for a fifth consecutive month.
The slowdown could undermine the economic recovery of Japan, especially as the yen remains strong against the dollar.
Market experts are predicting the limited export growth could force the Bank of Japan to take steps to ensure the yen does not continue to rise, especially as a high exchange rate pushes up prices of Japanese goods on the international market.
Japan's prime minister, Naoto Kan, has informed business leaders that the government would consider a number of possible pressures, claims the head of the Nippon Keidanren business lobby, Hiromasa Yonekura.
He added: "Stable currency moves are important. But the yen has been accelerating more than Japanese firms had expected."
One possible measure for the central bank could be to increase liquidity by continuing with its low-interest rate programme for financial institutions.
An economic expert recently claimed the policy decisions of the Japanese government could have long-term ramifications. Writing for the Wall Street Journal, Michael Auslin, claimed it is vital for the country to keeping a "wary eye" on China.
Written by Graham McPherson.