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.
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.
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.
On the 7th of March, the Bank of Japan informed that it decided to keep monetary policy intact, yet the central bank upgraded assessments of the country’s economy. Keeping monetary decision intact was widely anticipated as the Bank of Japan has been living in anticipation of new leadership which is believed to introduce radical steps to end deflation. Masaaki Shirakawa, the outgoing governor of the BOJ, rejected suggestions for more drastic easing measures from two board members, thereby leaving space for new governor’s decisions.
After all, Japan’s Prime Minister Shinzo Abe has got it made: he is to get rid of current BOJ Governor Shirakawa. The nomination of Haruhiko Kuroda as the next governor of the Bank of Japan is expected to bring basic and crucial changes in the monetary policy. The Shinzo Abe’s choice has raised the possibility of further monetary stimulus as Haruhiko Kuroda is known as the zealous supporter of more active monetary easing.
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.
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.
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.