Japan also out of recession!

Japan also out of recession!

www.belfasttelegra ph.co.uk

Japan is the latest country to emerge from the recession after recording growth of 0.9% in the second quarter of this year.

The slight improvement follows four consecutive quarterly contractions in the world's second-largest economy.

The turnaround is largely due to a boost in exports, which grew by 6.3% in the quarter.

France and Germany - the two biggest economies in Europe - have also recently come out of recession after recording small growth rates or the second quarter.

(visit the link for the full news article)

I recently started a thread about Germany and France emerging from recession here - www.abovetopsecret.com...

So, The EU and EUROZONE's two largest economies (Germany and France) and the worlds second largest economy (Japan) has emerged from recession.. slightly but still the signs are there.

As I said in the above thread, when this global financial crises began, the main forecasts for the worst countries to be hit were the ones that use the Anglo Saxon economic model of investment and risk growth - ie. US, UK, Ireland etc.

Germany, France, Japan etc use different more regulated slower growth rate models.

So, Im going to view this as a good sign. In the EU and EUROZONE, a number of economies are after emerging from recession, now Japan.. This is a good sign for the Global economy.

Obviously still not so good for the US and UK who are very important global players.

www.belfasttelegra ph.co.uk
(visit the link for the full news article)

Boy, I would love to view it as a 'good sign' too...but unfortunately, it seems like the Japanese and the U.S. government went to the same economics class.

Japanese unemployment hits six-year high

Japan's jobless rate hit a six-year high of 5.4 percent in June and deflation deepened as Asia's biggest economy wrestled with the fallout from its worst recession in decades, data showed Friday.
Reeling from plunging profits, Japanese companies shed thousands more workers, putting the unemployment rate on course to rise above its post-World War II high of 5.5 percent, last seen in April 2003.
The jobless rate will probably climb above 6.0 percent early next year, said Hiroshi Shiraishi, an economist at BNP Paribas.
"A lot of large corporations have been holding off slashing regular workers. But as it becomes clear that sales aren't going to recover much they will eventually have to start more aggressive restructuring," he said.
Hopes are mounting that Japan's economy has come through the worst of its export and production slump, but unemployment tends to lag behind economic growth in recovering from a recession.
The number of people out of work in June increased by 830,000, or 31.3 percent, from a year earlier to 3.48 million, lifting the jobless rate by 0.2 points from May when it stood at 5.2 percent, the government said.

I suppose things could have really 'turned around' in two weeks...

How is it that the economies of these nations can be getting better if the people are unable to find work?

It depends. The unemployment rate could hold steady but if there are other factors that are doing better (such as an increased in GDP), then that is considered an improvement in the economy. Thats doesnt mean it is fixed however....a country can come of of a recession but still have certain segments of the economy that need to improve to be considered a "sound" econmoy.

Exports, Stimulus Lift Japan Out of Recession

woopidoo, Japan is been stimulating itself now they are out of the recession, US stimulation is not enough

Japan's economy grew 0.9 percent in the three months to June, marking the first expansion in five quarters on the back of exports and government stimulus spending, but analysts say it will be a long road to a sustained recovery.

I got the feeling that their stimulation is not only coming from their own government but also from the US.

But economists say the recovery could lose momentum later this year when a temporary boost from government stimulus steps, such as one-off payments and subsidies for energy-efficient cars and home appliances, peters out.

So then again, the stimulation is only temporarily and as soon the stimulus goes out of steam Japan will go back to pre stimulation status

External demand, the balance of exports and imports, contributed 1.6 percentage points to GDP, due in part to China's $585 billion stimulus package and other such spending rolled out by governments around the world to combat the global recession.

And there you got it, stimulation from all over the world help japan GDP growth, now remember that the US imports increased during the last two months getting ready for the holidays and stocking up the the trinkets and goodies in the stores shelves

But then again who is helping the stimulation of Americas economy?

As usual the so call good news are not so good after all when they are just temporarily as long as stimulus are pour in the economies of this nations.

When the stimulus is over then what.

Its obvious that the growth here is on the back of stimulus packages but isn't that the whole point in them in the first place. The thing we have to remember is that stimulated growth is an investment with returns for the government who created the packages and spent the money so its not really fake growth like most people say.

That money is still in the economy, still being spent, still being used for investment and still being taxed, therefore returning to the government coffers eventually.

Obviously sustained growth depends on a healthy global economy and that depends completely on a healthy US & EU economies but this will hopefully help.

reply to post by Dermo


Exactly it is up to the global economy to help with growth, but when we have an economy like the US that is mostly Dependant on consumer spending the economy crisis has hinder the global growth as consumers in the US are not opening their pockets to help the global economy like before.

And to add more injury in the economic wound most of the stimulus that US has pour on the economy has gone to foreign nations.

Because Japan and China growths is because US stimulus stimulating their economies.

Originally posted by KSPigpen
How is it that the economies of these nations can be getting better if the people are unable to find work?

Its largely artificial, that's why. Here in the US, the government is artificially boosting GDP with a massive increase in spending over the last year. This spending has occurred at a rate that outweighs the total current contraction in the other three GDP components, including the weak consumer spending we've seen.

If China stops buying our debt and we're forced to cut back on all of that deficit spending at some point during the next year, you'll see just how much 'growth' this economy is really experiencing.

We stimulated them out of recession.

Example - cash for clunkers. How many people went out and bought American made cars? Or did they go out and buy Japanese cars?

Jobs always lag. It can be a year or two before we even see jobs get better. companies won't start rehiring until they are comfortable that they are out of the red for awhile.

reply to post by FlyersFan


Exactly, another blunder by our for the people morons in Washington, they are just feeding the foreign markets.

5.6% unemployment. A six year high.

My hometown in Canada would consider that unemployment rate the lowest in history. It's never been that low in my life, and probably not in my father's, either.

The real news today is that department store sales - along with investment - keep lagging. and they're going to continue to lag.

It's not uncommon for people to keep 10 grand in cash stashed at home for emergencies, alongside what's in the bank. That's considered fairly normal, actually. At times like these, when there's uncertainty in the air, the purses snap shut, and stay there until things have safely blown over. If we get a major quake in a metro area like we did in '95, it will likely drag on longer. After that one, spending pretty much stopped as people decided to save for a rainy day.

Japan - and Asia as a whole - will recover from this and be back to normal by the end of the year, though. There's been a lot of movement over the past few months with China, in terms of trade - picking up the slack from Europe and N. America. I'm confident that things will be back to normal here sooner rather than later.

reply to post by nixie_nox


Yes jobs always lag, but right now we are worst than during the great depression on job loses.

The only way that retailers and businesses can keep up with the economic crisis is cutting back on everything, from inventory to employees.

That makes thing worst in an economy that depends on consumer spending, meaning consumer with money in their pockets.

It is not going to be any recovery if consumers doesn't have money to spend because they have lost their incomes.

Retailers, businesses and industries will not be able to hire new employees if they are not making profits, meaning people with money in their pockets or "credit cards" to do the spending.

Actually we are in vicious circle, right now and is not end to that circle.



[edit on 18-8-2009 by marg6043]

reply to post by vox2442


The problem sometimes is not about a job, but if that job allow the spending needed to support an economy.

Making ends meet with a job doesn't equal to money to spend on trivialities.

That is what retailers are losing the ability of the consumer to spend on crap.

The standards of living in America are declining, you may find a job somewhere temporarily so you have to save whatever you can for a rainy day as temporary jobs doesn't guarantee unemployment benefits.

reply to post by marg6043




I thought we were talking about Japan...

reply to post by vox2442


Yes but I am making a comparison of the US economy, as Japan GDP growth is partly because of the US stimulus money been pour into the global economy.

Once the stimulus is gone things will reverse as Americas consumer losing jobs will not be able to support spending something that japan needs to keep their GDP and their own citizens can only support their own economy as long as is stimulus coming from their own government also.

In a global economy all nations depend on each other.