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Japan economy

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Japan’s exports sadden as they increased less than expected in April while the country’s trade deficit expanded significantly in the month. The Japan’s economy has a long way ahead to finally revive, but it seems that the weaker yen has not started bearing fruits yet. The disappointing results for April were mainly driven by weak demand from key trading partners, including the European Union and China.

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It seems that the Japan’s economy is slowly standing on its feet as official data showed that the country’s GDP for the first quarter substantially topped analysts’ estimates. The surprising result adds to signs that Abenomics works. Not surprisingly, all stimulus measures have already had a genuine impact on businesses and consumers as their confidence has notably increased as well.

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Japan had been waiting for new positive signs and the newest data did not disappoint, showing that country’s exports rose in March on the weak yen. Not only did the figures exceed analysts’ estimates, but they also indicated that the Prime Minister Shinzo Abe’s steps started bearing fruits. Apart from a visible increase in Japan’s exports, the country also witnessed a decrease in the trade deficit in the month of March as Japanese products were more attractive and competitive.

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The Bank of Japan’s pledge to invest in long-term bonds in the next two years is seen by many as a ‘new phase of monetary easing.’ This policy is in continuation of the Japanese Prime Minister’s aim to reverse nearly 15 years of deflation.

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Official data showed that Japan witnessed a surprising contraction in factory output in February. The released figures highlighted a huge task ahead of the new government of the world’s third economy. The government will have to work by the sweat of its own brow to get out of economic stagnation and deflation.

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Is this the end of recession? At least, latest data indicated that. According to the revised survey, Japan saw its economy expand in the final quarter of 2012. Certainly, the news is a good sign for Prime Minister Shinzo Abe who is focused on getting Japan out of two long decades of deflationary stagnation.

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The Japan’s Ministry of Finance informed that the annual trade deficit in 2012 increased to record $78 billion as the country saw its exports continue to decline due to a territorial dispute with China and prolonged crisis in Europe. The new Prime Minister, Shinzo Abe, tries to introduce new measures aimed at boosting the struggling economy.

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A $116 billion stimulus package has been approved as Prime Minister Shinzo Abe is trying to get the Japan’s economy back on track after the dark times. The steps introduced by the Japanese government are aimed at forcing economic growth. Prime Minister Shinzo Able also declared that the government would improve its cooperation with the Bank of Japan in order to support the economy.

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On the 28th of December, government data showed that Japan’s industrial output decreased as much as 1.7 percent in November, indicating the weakness of the world’s third economy. Even though some indicators were promising, the new government of Shinzo Abe will have to face many challenges to bolster the Japan’s economy which is still struggling amid the Japanese-Chinese territorial dispute.

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