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The following article was published in our article directory on December 27, 2010.
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Japan Economy Steadily Continued to Decline

Article Category: Business Management

Author Name: Amanda xzh

2010 will soon be over, but not as the beginning of the Japanese economy toward self-discipline as the expected recovery, but by the slow recovery to a standstill, the first three quarters of positive growth for the fourth quarter into negative growth.

Financial crisis, Japan has taken a number of policies to stimulate the economy, which make people the most affordable, most close to the people's livelihood measures to stimulate the national consumption of environmentally friendly vehicles and energy-saving appliances integral system of subsidies. However, in September this year, green cars ended subsidy policy, domestic car sales in October fell 26.7%. Japan Automobile Dealers Association predicted that began in October started the next 6 months the whole industry vehicle sales to drop 23% year on year. Integral appliances to the December half of environmental protection, in November to catch the last train by consumer psychological impact, TV sales reached 600 million units, an average of 1 / 8 of the Family replace TV, TV manufacturers sales "unprecedented." But the Japanese October stagnant economy, has also been bound to the fourth quarter of negative growth.

Policies to stimulate consumption has left serious consequences, according to the first ever Life Research Institute researchers believe that Bin Kwong Lee, cars, home appliances overdraft consumption of consumer durables spending may bring 3-year stagnation.

April 1997 raising the consumption tax in Japan, from 3% to 5%, consumers stepped up in April to buy durable consumer goods before, resulting in a long time after the low sales of durable consumer goods to increase in 2000 was restored to the status of consumption tax . The average number of years the use of television for 10 years, cars more than 8 years, a long time in the future, Japan is inevitable there will be low to buy durable consumer goods, which is Japan's deflation is not good news.

Japan's economy bottomed out from the spring of 2009, this fall has been slow to recover, the contribution of external demand, a large proportion, from July to September this year, real GDP growth of 3.9%, which accounted for part of the increase in foreign demand pull 56%. Although the demand for emerging market countries in Asia remained strong, but the yen has been higher, from the beginning of the year against one U.S. dollar to 92 yen to 84 yen to the current level of $ 1. In order to avoid the risk of appreciation of the yen, more and more Japanese companies transfer their production bases overseas. Japan's industrial vacuum is getting worse.

Japan's economic outlook next year, although the U.S. economy in slow recovery, and Asia, strong demand in emerging market countries such favorable factors, but generally people are not optimistic about the growth rate. 13 private investigation agency of the Japanese economy's latest projections indicate that, except for price changes, the average growth rate of Japan's 2011 GDP forecast is 1.2% and 3.2% in 2010 compared to fall sharply. Meiji Yasuda Life which is relatively optimistic, forecasting growth of 1.8%, the lowest of Japan Research Institute, only 0.3%. Japanese government survey predicted slightly higher than the non-governmental organizations, government scheduled the annual real GDP growth rate 2011 1.5%. And is expected to improve the employment situation, the unemployment rate to 5% by the year 2010, down 4.7%, consumer price index to 2011, turned positive mid-year, after the year 2012, out of deflation.

Prediction of the Japanese government gives no lack of encouragement of the ingredients, tell the national economy, there will always be some bright spots, people would not get disappointed. But the Japanese people are very disappointed that the Government of Japan, the Democratic Party government took office 15 months, for two Prime Minister Yukio Hatoyama did 8 months, poorly and had to leave, Naoto Kan took office more than six months, internal affairs Full diplomatic difficulties, support more than 60% of the initial rate decreased to 21% now

Japan's economy continued to decline steadily in Japan, after all, an economic power, not all of a sudden sharp decline, the rate of decline with a "smooth" to describe, but if the "continuous" recession continues, is very troublesome thing, the article that, in order to restore This situation, long-term need for major reform.

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