The “Abenomics” is delivering positive results when, for the second straight month, assessment on Japan’s economy showed recovery and growth. The steady economic growth was credited to increase in exports and industrial output, as reported on Thursday. The Bank of Japan has also seen the economy picking up and the bond markets going stable.
An official from the cabinet office described exports as “key” to [economic] growth, adding “a clear trend of pickup and output is rising for five months in a row.” The delighted official also revealed, “As such we see some signs of a favorable cycle of demand leading to output and household income.” Recent activities in the Japanese market, especially in foreign investments, have stirred the economy. The first quarter of the economy has yielded a 4.1 percent growth.
There still remain some financial market swings but were not considered to cause much effect. Although prevalent in Europe, Japan sees the turbulence as something temporary. Some companies also remain hesitant to take considerable risks, based on a data released on Wednesday. Machinery spending was not common and orders fell compared to last month’s record. Industrial equipments and plants were not seen as favourites when it comes to company spending, which could actually turn into a profitable investment given the proper assessment and planning.
Although the dollar has gone below 95 yen, the cabinet official admitted not to “see a fully fledged recovery until capital spending recovers.” With such, he remains hopeful to see a result to “sustained growth with jobs and income gains.” He also said that capital spending and private consumption report is showing to be the same of the previous month’s assessment.
Comments Off on JDP Startup Corner: Pros & Cons of Working with a Partner in Japan