Wednesday, August 19, 2009

Japan: Is Economic Recession Really Over?

Just a few days ago, we saw reports in the media that economic recession is over in Japan. There was around 0.9% GDP growth in April June Quarter compared to the earlier 3 months. This is welcome news for everyone in the country.

Business Week reported:

The big bounce—GDP plunged by at over 10% (annualized) in the previous two quarters—owes much to stimulus packages in Japan and around the world. Domestic spending, aided by an 8% rise in government expenditure, and earnings from exports both increased. The trend could continue: “We expect to see an acceleration in Japan’s real GDP growth rate for the July–September quarter,” Credit Suisse economist Hiromichi Shirakawa wrote in a note to clients.

At the same time, we have heard some news about Germany and France. It seems that things are going to improve in Korea too. Well, still I am a bit skeptical about Japanese economy. Its share market is not doing that much well and has become instable. I hope that Japan can come back strongly soon in the global economy.