ID :
15908
Thu, 08/14/2008 - 20:57
Auther :
Shortlink :
http://m.oananews.org//node/15908
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Japan Economy Seen Not to Recover before April-June '09
economy not to pick up before April-June 2009 following a steep contraction in the last quarter, with recovery in exports and private consumption seen as key to bringing economic growth back on track.
The Cabinet Office said in a preliminary report Wednesday that the nation's seasonally adjusted gross domestic product in April-June this year shrank a real 0.6 pct from the previous quarter, or an annualized decline of2.4 pct.
The drop in the first quarter of fiscal 2008 was the sharpest since July-September 2001, when the economy contracted following the collapse ofthe so-called information technology bubble.
In its monthly economic report, released on Thursday, the Cabinet Office admitted that the country's longest expansion in the postwar periodmay have ended.
The same day, Toyota Motor Corp. <7203> reported falls in sales and profits in April-June due to slack business in North America, soaring crude oil and raw materials prices and the yen's appreciation. The poor earnings of Japan's top automaker cast a shadow over the course of the Japaneseeconomy.
Toyota Executive Vice President Mitsuo Kinoshita told a press conference that weak demand in the North American market is expected tocontinue into the third quarter.
Also hit by the global economic slowdown, Sony Corp. <6758> suffered profit declines in April-June following a brisk earnings recovery in fiscal 2007 to March, due chiefly to sluggish business of affiliate SonyEricsson, a maker of mobile phone handsets, in Europe.
Mobile phone sales also dropped at Sharp Corp. <6753>, the tophandset maker in Japan, reflecting lackluster domestic consumption.
The April-June GDP report showed that personal consumption sagged areal 0.5 pct quarter on quarter, marking the first decrease since July-Sept.
2006.
Durable goods, such as flat-panel television sets, enjoyed brisk demand ahead of the Beijing Olympics, but personal spending dropped 2.3 pct for semidurable goods, such as clothing, and 1.9 pct for nondurables such asfuel and foods.
Economic and Fiscal Policy Minister Kaoru Yosano noted at a press conference that it was no surprise that rising prices prompted consumers tobe cautious in their spending.
For major think tanks, the economic contraction in April-June was within projections. They expect the economy to post marginal growth or tokeep shrinking in July-Sept.
Helped by the summer heat wave since July, sales have been upbeat for seasonal items such as beer and air conditioners. But highflying crudeoil prices are expected to keep acting as a drag on the Japanese economy.
The economy is seen benefiting from the recent fallback in crudeoil prices only from September, according to the NLI Research Institute.
Many economists believe the Japanese economy started contracting late last year or early this year and expects a pickup only aroundApril-June 2009.
The Dai-ichi Life Research Institute said a moderate setback islikely to continue for about 16 months.
The Cabinet Office said in a preliminary report Wednesday that the nation's seasonally adjusted gross domestic product in April-June this year shrank a real 0.6 pct from the previous quarter, or an annualized decline of2.4 pct.
The drop in the first quarter of fiscal 2008 was the sharpest since July-September 2001, when the economy contracted following the collapse ofthe so-called information technology bubble.
In its monthly economic report, released on Thursday, the Cabinet Office admitted that the country's longest expansion in the postwar periodmay have ended.
The same day, Toyota Motor Corp. <7203> reported falls in sales and profits in April-June due to slack business in North America, soaring crude oil and raw materials prices and the yen's appreciation. The poor earnings of Japan's top automaker cast a shadow over the course of the Japaneseeconomy.
Toyota Executive Vice President Mitsuo Kinoshita told a press conference that weak demand in the North American market is expected tocontinue into the third quarter.
Also hit by the global economic slowdown, Sony Corp. <6758> suffered profit declines in April-June following a brisk earnings recovery in fiscal 2007 to March, due chiefly to sluggish business of affiliate SonyEricsson, a maker of mobile phone handsets, in Europe.
Mobile phone sales also dropped at Sharp Corp. <6753>, the tophandset maker in Japan, reflecting lackluster domestic consumption.
The April-June GDP report showed that personal consumption sagged areal 0.5 pct quarter on quarter, marking the first decrease since July-Sept.
2006.
Durable goods, such as flat-panel television sets, enjoyed brisk demand ahead of the Beijing Olympics, but personal spending dropped 2.3 pct for semidurable goods, such as clothing, and 1.9 pct for nondurables such asfuel and foods.
Economic and Fiscal Policy Minister Kaoru Yosano noted at a press conference that it was no surprise that rising prices prompted consumers tobe cautious in their spending.
For major think tanks, the economic contraction in April-June was within projections. They expect the economy to post marginal growth or tokeep shrinking in July-Sept.
Helped by the summer heat wave since July, sales have been upbeat for seasonal items such as beer and air conditioners. But highflying crudeoil prices are expected to keep acting as a drag on the Japanese economy.
The economy is seen benefiting from the recent fallback in crudeoil prices only from September, according to the NLI Research Institute.
Many economists believe the Japanese economy started contracting late last year or early this year and expects a pickup only aroundApril-June 2009.
The Dai-ichi Life Research Institute said a moderate setback islikely to continue for about 16 months.
