Japanese Economy at Its Lowest in Two Years
Concerns continue to grow as Japan’s economy still refuses to budge. An official statement by the Japanese government described the country’s economic development as “pausing”. The Japanese economy has not been in this stagnant state for over two years – the reasons why both government officials are now voicing out their concerns.
The culprit to blame: the ever raising Yen and the decrease for the demand of Japanese exports.
In the past few months, government officials have been in denial of the said economic standstill. But as the Yen kept on rising higher, these past few days, the situation was as real as it can get.
The main concern for the economy and one of the main factors for the economic standstill was the “weakening” of export demands. Financial analysts are predicting that this situation will not get any better soon. It was reported that shipments to neighboring countries and around Asia were getting very slow in particular.
In spite of the intervention from the finance ministry, the Yen was said to have maintained its stronghold over the Dollar with a record breaking 15-year high. The finance ministry’s act of intervention was the first ever to be witnessed in over six years.
Japanese Prime Minster, Naoto Kan came to the aid of the country’s degrading economic state by passing a stimulus package worth 5.1tn Yen to shield exporters from the poor exchange rates which are slowly draining away their profits.
Currently, Tokyo stock exchange has the currency at 81.44 Yen to a Dollar, this is from a previous 81.27.
According to a senior cabinet official, if things turn out as they expected them to; this may only be a passing storm for the Japanese economy. But if the boat keeps on rocking a little bit more, it can take the whole country down to a recession.
Online News Heard Now,
Jenny Jabobski
Image: Dino De Luca / FreeDigitalPhotos.net
Short URL: http://www.onlinenewsheardnow.com/?p=531
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Japan should stop fretting about the dollar, it’s doomed, and start figuring out how to export to the Chinese and other growth economies. Trying to prop up the yen against the USD is hopeless and lining somebody’s pockets. Using the citizen’s money to do this is immoral.