Japan's economy running at 5.5%

Wang · Feb 18, 2006, 01:22

Japan's economy running at 5.5%

Thursday, February 16, 2006; Posted: 7:57 p.m. EST (00:57 GMT)

TOKYO, Japan (AP) -- Japan's economy grew at an annual pace of 5.5 percent in the fourth quarter, the government said Friday, underscoring a convincing recovery on booming exports and healthy consumer spending.

Compared to the previous quarter, the economy expanded 1.4 percent during the October-December quarter, the Cabinet Office said. If that rate were maintained for a full year, Japan's gross domestic product - the value of goods and services produced in a nation - would grow 5.5 percent.

The numbers, which were better than analyst predictions, are the latest dose of good news for the world's second-largest economy, which has suffered through more than a decade of slow or zero growth.

Major companies carried out drastic cost cuts, and corporate profits and capital spending have rebounded in recent months. Robust growth in China and relatively solid growth in the U.S. economy have underpinned Japanese exports and revival.

Surging capital investment and growing exports, especially autos, drove growth during the fourth quarter, Fumikazu Hida of the Cabinet Office told reporters.

The article is here.

Wang · Feb 18, 2006, 21:18

Here is another interesting article about Japan's economy.

Growth puts Japan back with the leaders

By David Turner in Tokyo and Chris Giles in London
Published: February 17 2006 01:49 | Last updated: February 17 2006 22:15

Unexpectedly strong growth in the last quarter propelled Japan’s economy once again into being a world leader, promising an end to 15 years in the doldrums when periodic economic revivals dissolved into false dawns.

The world’s second biggest economy grew 1.4 per cent in the fourth quarter – far in excess of the 0.3 per cent growth recorded in the US and growth of 0.4 per cent in the European Union.

Japan’s strong last quarter growth exceeded market expectations and raised the 2005 annual growth rate to 2.8 per cent. More important for Japan, 2005 marked the third year of healthy economic growth, spurred by domestic spending.

With a stronger financial sector no longer crippled by bad loans, economists say Japan has the best chance since 1991 to sustain economic growth.

Japanese ministers have recently played down positive economic numbers for fear of appearing to support the case being made by some Bank of Japan officials for an end to the country’s ultra-loose monetary policy. But yesterday, Kaoru Yosano, the minister for the economy, changed tack, describing the figures as “very positive economic indicators”.

Analysts said the numbers supported the view that Japan was finally emerging from years of stagnation.

The more sustainable nature of Japan’s economic expansion in 2005 was demonstrated by the dominance of domestic influences over growth. Household consumption rose by 2.2 per cent, while non-residential business investment surged by 8.4 per cent. Net exports contributed only 0.2 percentage points to the 2.8 per cent annual growth rate.

But Japan has hurdles to jump before it can convince the world it has cured its economic malaise. The spectre of deflation has not yet been convincingly purged. Though the consumer price index has recently started rising, gross domestic product figures showed much of this rise was based on higher oil prices.

Rising Japanese growth has also done little to reduce the gaping global trade imbalances embodied in the US trade deficit. Imports have not begun to grow fast enough to reduce Japan’s trade surplus.

Click here for the article.

Feb 18, 2006, 01:22	#1
Wang Regular Member Join Date: Apr 21, 2004 Location: Originally from Taiwan Posts: 324	Japan's economy running at 5.5% Japan's economy running at 5.5% Thursday, February 16, 2006; Posted: 7:57 p.m. EST (00:57 GMT) TOKYO, Japan (AP) -- Japan's economy grew at an annual pace of 5.5 percent in the fourth quarter, the government said Friday, underscoring a convincing recovery on booming exports and healthy consumer spending. Compared to the previous quarter, the economy expanded 1.4 percent during the October-December quarter, the Cabinet Office said. If that rate were maintained for a full year, Japan's gross domestic product - the value of goods and services produced in a nation - would grow 5.5 percent. The numbers, which were better than analyst predictions, are the latest dose of good news for the world's second-largest economy, which has suffered through more than a decade of slow or zero growth. Major companies carried out drastic cost cuts, and corporate profits and capital spending have rebounded in recent months. Robust growth in China and relatively solid growth in the U.S. economy have underpinned Japanese exports and revival. Surging capital investment and growing exports, especially autos, drove growth during the fourth quarter, Fumikazu Hida of the Cabinet Office told reporters. The article is here. __________________ 台湾共和国 Republic of Taiwan. Freedom for Taiwan.

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Feb 18, 2006, 21:18	#2
Wang Regular Member Join Date: Apr 21, 2004 Location: Originally from Taiwan Posts: 324	Here is another interesting article about Japan's economy. Growth puts Japan back with the leaders By David Turner in Tokyo and Chris Giles in London Published: February 17 2006 01:49 \| Last updated: February 17 2006 22:15 Unexpectedly strong growth in the last quarter propelled Japan’s economy once again into being a world leader, promising an end to 15 years in the doldrums when periodic economic revivals dissolved into false dawns. The world’s second biggest economy grew 1.4 per cent in the fourth quarter – far in excess of the 0.3 per cent growth recorded in the US and growth of 0.4 per cent in the European Union. Japan’s strong last quarter growth exceeded market expectations and raised the 2005 annual growth rate to 2.8 per cent. More important for Japan, 2005 marked the third year of healthy economic growth, spurred by domestic spending. With a stronger financial sector no longer crippled by bad loans, economists say Japan has the best chance since 1991 to sustain economic growth. Japanese ministers have recently played down positive economic numbers for fear of appearing to support the case being made by some Bank of Japan officials for an end to the country’s ultra-loose monetary policy. But yesterday, Kaoru Yosano, the minister for the economy, changed tack, describing the figures as “very positive economic indicators”. Analysts said the numbers supported the view that Japan was finally emerging from years of stagnation. The more sustainable nature of Japan’s economic expansion in 2005 was demonstrated by the dominance of domestic influences over growth. Household consumption rose by 2.2 per cent, while non-residential business investment surged by 8.4 per cent. Net exports contributed only 0.2 percentage points to the 2.8 per cent annual growth rate. But Japan has hurdles to jump before it can convince the world it has cured its economic malaise. The spectre of deflation has not yet been convincingly purged. Though the consumer price index has recently started rising, gross domestic product figures showed much of this rise was based on higher oil prices. Rising Japanese growth has also done little to reduce the gaping global trade imbalances embodied in the US trade deficit. Imports have not begun to grow fast enough to reduce Japan’s trade surplus. Click here for the article.