Wednesday, 1st December 2010
In General Japan News,
Production falls in Japan
Industrial production has fallen for the fifth month running as the country's economy shows signs of a recovery slowdown.
October's figures reveal a 1.8 per cent decline in industrial output compared to September – although this was below expectations of a 3.3 per cent drop.
The trade ministry believes that the fall was due to a reduction in the production of and export demand for electronic devices and automobiles.
However, experts are predicting that this could be the lowest point for production, with results rising by the year.
"Industrial output might have reached a bottom in October," explained Mitsubishi UFJ Securities senior economist Tatsushi Shikano to AFP.
He added: "It's more important that the government expects positive readings in the next two consecutive months."
Initial government forecasts are showing a production rise of 1.4 per cent in November and 1.5 per cent in December.
Meanwhile, BBC News reports that Japan's gross debt is close to 200 per cent of the country's annual economic output, compared to less than 100 per cent in the UK, US and Germany.
Written by Susan Ballion.