Japan optimistic about future economic prospects

| February 15, 2011 | 0 Comments

The Bank of Japan (BOJ) has today said the economy is emerging from a slowdown and is optimistic about future prospects.

The statement comes just a day after figures revealed Japan’s economy, which is now the world’s third largest, contracted by 0.3% in the final three months of 2010.

While it was marginally less than the 0.5% fall expected by analysts, it still represented the first contraction in five quarters.

However, despite the contraction, analysts expect an export-driven recovery this year.

Meanwhile, the BOJ said exports and production are picking up - boosted by growth in the global economy.

The Bank today opted to keep interest rates in the range of zero to 0.1% and analysts believe it will be some time before rates are lifted due to deflationary pressures.

In other news, yesterday it was revealed that China is now officially the world’s second largest economy – taking over from Japan, which slides into the third place.

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