WORST IS OVER, SAYS MINISTER
Japan may be set for recovery
TOKYO - The worst of Japan's economic woes are over and the world's second-largest economy may be heading towards recovery, Economic and Fiscal Policy Minister Heizo Takenaka said on television yesterday.
'Depending on the strength of next week's machinery orders figures, a leading indicator of business spending, we may be able to declare that the economy has bottomed out and is heading to a more forward-looking phase,' he said on NHK's Sunday Debate television programme.
The government will release figures for May machinery orders today and its monthly economic assessment on Thursday.
Japan's economy grew for the first time in a year in the quarter ended March 31 at 1.4 per cent, thanks to an export and production boost.
Still, with exports accounting for half of the country's first-quarter growth, the recovery may be cut short. A stronger yen, which has risen 9.4 per cent against the dollar in the last three months, may hamper exports to the United States.
Trying to play down such fears, Mr Takenaka warned against too much pessimism. 'The direction of the US economy is obviously of concern... But the yen strengthening is mostly because the dollar is weakening.'
With much of Japan's recovery hopes pinned on US economic performance, he stressed the need for more structural reforms.
'This recovery is not as strong as previous recoveries, as many manufacturers have moved production overseas.
'The weakness reflects the old structural problems in Japan and points to the need to push through with reforms.' -- Bloomberg News |
