Friday, September 10, 2010
Vital Statistics
22 Aug 2007
Japan continues moderate growth - BERL Forecasts June 2007
The Bank of Japan released its Monthly Report of Recent Economic and Financial Developments suggesting that “Japan’s economy is expanding moderately” with solid private investment and continuously increasing household income.
Net exports also enjoyed increases supported by the yen at a 20 – year low. Real exports, as well as real imports, have been increasing. However, the rate of increase for real imports is not as significant as the domestic economy still shows restraint.
Japan has been worried about being left out of the free trade agreements between other Asian countries and their main export countries. During a council meeting on Economic and Fiscal Policy on May 9th, the government was urged to actively engage in trade and export/import activities with its main trade partners.
Although the declining trend of public investment is continuing, the rate of decrease has been slowing down. This component of GDP is expected to decline in the next few periods.
Japan’s economy is expected to continue on its moderate growth path. In the short run strong exports and recovering household consumption are the drivers. In the long run, technology and innovation will be the main driver. Japan recently won the title of the world’s most innovative country, according to Economist Intelligence Unit. The innovativeness was measured by patents per person. Japan topped the rank by scoring a maximum 10 on the level of innovativeness, leaving Switzerland second with 9.75. Other countries on the top-ten list were the United States, Sweden, Finland, Germany, Denmark, Taiwan Netherlands and Israel.
GDP growth in Japan was 2.0% in June, compared to the previous year.
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