Latest News

Tuesday, 15th November 2011
In Business In Japan,

Japanese economy shows signs of recovery

Confidence in the Japanese economy may be improving as the nation experienced its first increase gross domestic produce (GDP) in 18 months, new figures revealed.

The nation’s economy expanded a comforting six per cent during the third-quarter ending September, signifying the most financially promising results since the triple tragedy of March 11th, the Cabinet Office announced yesterday (November 14th).

Success in the automobile sector was among the bigger drivers as exports benefited from a 6.2 per cent boost.

This improvement also reflected increased consumer confidence as more people were spending.

However, economists remain cautious as the sovereign debt crisis in Europe and the strengthen position of the yen all work against Japan.

Warning that the positive results are unlikely to continue, fiscal policy minister Motohisa Furukawa said: “We must watch closely the risks of overseas economies deteriorating and the yen’s quick rise, as well as other factors such as the impact of the flooding in Thailand,” the Japan Times quoted.

Last month, senior vice minister of finance Fumihiko Igarashi suggested further market action was needed to counteract the yen’s strength.

Posted by Susan Ballion