Tag: deflation

Japanese economy continues to struggle

Japanese economy continues to struggle

The Cabinet Office has today revealed the world’s third largest economy performed worse than originally thought in the April to June period. Gross Domestic Product (GDP) contracted by 2.1% on an annual basis in the three-month period, compared with an initial estimate of 1.3%. The fall was attributed to a cut back on spending by [...]

Japan CPI rises for second consecutive month

Japan CPI rises for second consecutive month

The Statistics Bureau has today revealed Japan’s core consumer price index (CPI) rose by 0.6% in May on an annual basis – the second consecutive monthly rise due to higher commodity prices. The rise was higher than forecasts of a 0.5% gain and comes after the 0.6% rise in April – which represented the first [...]

Japan’s car production slumps in April

Japan’s car production slumps in April

Japanese carmakers have been hit as a result of the earthquake and tsunami in March. Figures today revealed Toyota, the world’s largest carmaker, said production plunged 74.5% in April on an annual basis. Meanwhile Honda’s output fell 81% on an annual basis, while Nissan suffered a 48.7% fall as they were forced halt production as [...]

Japan ends 2 years of deflation

Japan ends 2 years of deflation

The Statistics Bureau has today revealed Japan has overcome deflation for the first time in 25 months after consumer prices rose by 0.6% last month – in line with forecasts. A short period of deflation (where prices fall rather than increase) is a serious threat to an economy because it deters consumers and businesses from [...]

Japan Q4 economic growth revised downwards

Japan Q4 economic growth revised downwards

The Cabinet Office has today revealed the Japanese economy contracted by 1.3% in the October to December period – slightly worse than the first estimate of 1.1%. Today’s estimate is the second reading, a third and final estimate will be available next month. The downward revision was attributed to an expired Government incentive for low-emission [...]

Japanese industrial output up 2.4% in January

Japanese industrial output up 2.4% in January

The Trade Ministry has today reported a further rise in Japanese industrial output. Output grew 2.4% in January on a monthly basis - its third consecutive rise and compares with a 3.3% increase in December. According to the Ministry, growth was fuelled by demand for transport equipment, machinery and metals. However, January’s figure was slightly [...]

Japan continues to battle with deflation

Japan continues to battle with deflation

Official figures show Japanese core consumer prices fell 0.2% in January compared with a year ago – representing the 23rd consecutive monthly decline that the world’s third largest economy has been in deflation. A short period of deflation (where prices fall rather than increase) could be a serious threat to the economy because it deters [...]

Japan’s credit rating cut to AA-

Japan’s credit rating cut to AA-

Standard & Poor’s (S&P) has today cut Japan’s credit rating from AA to AA-, the first time in nine years such measures have been taken. The credit rating agency cited the country’s mounting debt worries for the downgrade. Japan’s debt currently stands at almost twice the country’s annual economic output - this compares with 136.8% [...]

Japan’s exports improve further in December

Japan’s exports improve further in December

Japanese Government debt to reach 204.2% of GDP

Japanese Government debt to reach 204.2% of GDP

Despite being one of the first major economies to emerge from recession - in the second quarter of 2009 - Japan faces many risks to its recovery. Not only is it battling with deflation, it struggling with a strong yen, which continues to weaken demand for exports and threatens the economic recovery. A short period [...]

Japanese factory output picks up, deflation worries continue

Japanese factory output picks up, deflation worries continue

Japan’s industrial production rose in November for the first time in six months, increasing by 1% on the previous month, boosted by higher car production. The rise was also attributed to Government incentive programmes and will undoubtedly ease concerns about the recovery of the world’s third largest economy. The figures, published by the Ministry of [...]

Japan’s export growth improves in November

Japan’s export growth improves in November

Government data has today revealed Japanese exports picked up in November - for the first time since February. Exports grew 9.1% to 5.44 trillion yen in November on an annual basis, against the 7.8% reported in October. However, the figure was still short of expectations for a 10.8% gain. The improvement was attributed to strong [...]

Bank of Japan keeps interest rates at record low

Bank of Japan keeps interest rates at record low

The Bank of Japan (BoJ) has today left interest rates at almost zero, in a bid to boost the economy and continue its battle against deflation. The Japanese recovery has been faltering of late and exports, a crucial driver for economic growth, continue to slow. In addition, a strong yen could be damaging for the [...]

Japanese economic growth revised upwards

Japanese economic growth revised upwards

Official figures have today revealed the Japanese economy grew faster than estimated in the third quarter due to stronger corporate spending. The world’s third largest economy grew by 1.1% in the July to September period, up from the first estimate of 0.9%. On an annual basis, the economy expanded by 4.5% from an earlier estimate [...]

Japanese deflation worries persist

Japanese deflation worries persist

Official figures today showed the Japanese economy continues to battle with deflation. Figures revealed Japanese core consumer prices fell 0.6% in October compared with a year ago – representing the 20th consecutive monthly decline that the economy has been in deflation. Last month, the Bank of Japan cut interest rates to almost zero. The move [...]

Japanese economy sees expansion in Q3

Japanese economy sees expansion in Q3

Official data today revealed Japan’s economy grew strongly in the July to September period after the expiry of a Government incentive prompted a rush of car buyers and a sharp rise in cigarette sales before a new tobacco tax was levied. In addition, the hottest summer ever boosted sales of air conditioners and other related [...]

Bank of Japan keeps interest rates at record low

Bank of Japan keeps interest rates at record low

The Bank of Japan (BoJ) has today left interest rates at almost zero, in a bid to boost the economy and continue its battle deflation. The move follows its surprise decision last month to cut interest rates to this level. The Japanese recovery has been faltering of late and exports, a crucial driver for economic [...]

Japanese industrial output in fourth consecutive monthly fall

Japanese industrial output in fourth consecutive monthly fall

The Ministry of Economy Trade and Industry has revealed Japanese industrial output fell in September - the fourth consecutive monthly fall. Figures show output fell 1.9% in September compared with the previous month - way below expectations of a 0.6% fall. However, the fall was attributed to the strong yen, which is weakening demand for [...]

Japanese interest rates on hold, growth forecasts cut

Japanese interest rates on hold, growth forecasts cut

The Bank of Japan (BoJ) has today opted to keep interest rates on hold between zero and 0.1%. The move comes just weeks after the Bank surprised analysts and cut rates to this level. The measures come as the economy continues its battle with deflation. Deflation is also a concern for the Japanese economy. Recent [...]

Japanese exports slow further in September

Japanese exports slow further in September

Government data has today revealed a further slowdown in Japanese exports in September. While the figures exceeded expectations, exports still grew at their slowest pace this year, as the strong yen weakens demand for exports and threatens the economic recovery. Exports rose 14.4% in September to 5.84 trillion yen on an annual basis – well [...]