Posted on 06/09/2004 3:48:58 PM PDT by blam
Japanese growth set to beat US
Japanese consumers are key to an ongoing recovery
Japan's economic growth forecasts have been revised upwards as the recovery gathers steam. Bulging demand has pushed estimates to 6.1% for the full year, up from the previous estimate of 5.6%.
Gross Domestic Product (GDP) grew 1.5%, in real terms, in the first quarter up from the previous estimate of 1.4%.
Japan is the world's second biggest economy and now looks set to outstrip US growth of 4.4% annualised for the same period of January-March.
It is welcome news for Prime Minister Junichiro Koizumi, attending the G8 summit, as he faces another election in just a few weeks time.
Mr Koizumi returned to power with a majority government in November's general election and now faces upper-house elections in July, which could make or break his current second-term premiership.
Boost
A strong economy in Japan was also welcomed by President Bush attending the G8 summit.
Showering Mr Koizumi with praise Mr Bush said, "The first thing, of course, I will do is congratulate him on the fact that the Japanese economy is improving under his leadership."
In a meeting between the two leaders Mr Koizumi claimed the recovery in Japan was a result of his policy of "no growth without reforms".
His administration has made reforms at government agencies and urged the same at private-sector firms since Mr Koizumi took office three years ago.
China factor
The wider picture reveals that Japan also owes its change of fortune to booming export demand from China and other fast-growing countries in the region.
Recent industrial output figures showed a 3.3% rise in April compared to March and reinforced hopes that the recovery is sustainable.
Japan's economic growth hit a 13-year high in the last quarter of 2003.
Japan always does better when america has Republican presidents... I don't understand it, but a japanese exchange student once told me that back when I was a democrat.
ummm....6.1% of $4.2 Trillion is still a LOT less than 4.1% of $11+ Trillion.
What's your point?
Well it is obvious: The Chinese cannot find as many people to bribe so they go over to Japan and go shopping. Nothing could be simpler.
This is great news. Japan is one of our greatest political, economic, and cultural allies.
I truly hope that the EU gets it's own house in order rather than throwing stones at ours. I hope that they get their economies humming smoothly rather than throwing monkey-wrenches in ours. The passing of Ronald Reagan reminds me that the major reason that the Iron Curtain fell was the growing disparity in wealth between the East and the West. Too many blue jeans in West Germany, too many transistor radios. Eventually the slaves and serfs of Communism threw off their yokes and joined us.
Now I hope that the French stop wallowing in their noble lower-middle-class lifestyle that will be closer to our poverty level in another decade. As we become more powerful, and more affluent, the EU will either die of jealousy or will slowly throw off the yoke of Socialism and truly join the Capitalist world.
You're right, this is wonderful news, and not just for Japan. Japan's economy seemed to be sliding toward collapse not so long ago, and the consequences would have been grim for all of us.
I hope finally Japan is turning a corner and this will be a real recovery. The Japanese economy has been in bad shape for many years.
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