Mitsui Credit Global: Worst
contraction on record for Japan’s battered economy
Mitsui Credit Global reports Japan’s
economy shrank at its fastest pace since records began in the first quarter of
the year. Exports plunged while domestic consumption collapsed in the unprecedented
4% contraction in the 3 months from January to March.
One need not look too far for the culprit; Japan’s economy is heavily reliant
upon exports and, with most of its export markets contending with their own
recessions and economic slowdowns, there is significantly less demand for
Japanese products. Japan has been grappling with anemic growth and deflation for
years, a stubborn overhang from the great economic collapse of its real estate
and stock market boom in 1989 that marked the beginning of the period often
referred to as the “Lost Decade”.
Japan’s cars and her electronics simply aren’t finding as many buyers as they
used to but, surprisingly, there are a few optimistic predictions floating
around for the country following a modest rise in production in March.
For now, it appears the weakness in Japan’s corporate sector has wound its way
into households with many consumers simply unwilling to open their purses. Data
shows that investment in heavy equipment and factories slipped by 10.4% in the
first quarter, highlighting reluctance on the part of companies to increase
expenditure in order to expand. In Japanese households, concerns over job
security have mounted causing the savings rate to tick up, worsening the
severity of the recession.
Hope springs eternal and we expect some form of response from the Bank of Japan
but we’re not holding our breath for fireworks. The timidity that’s come to
characterize the central bank’s monetary policy has become as much of a problem
as the deflationary spiral that continues to dog the country nearly 20 years
after the crisis.
About Mitsui Credit
Global:
Providing value to their customers is their
single core value. They make strategic investments they know they can build
with their deep industry knowledge, with the goal of later selling at profit.
Using their industry leading One Mitsui Credit Global network platform,
combined with their Operational Excellence team and strong analytical and data
driven knowledge, they create and manage custom plans for each of their private
equity and real estate investments. Our strong successes enable our investors
to reach their goals, such as pension funds enabling the secure retirements of
millions of
public employees.
Contact Mitsui Credit Global:
16F / Yodoyabashi Mitsui Building
4-1-1 Imabashi, Chuo-ku, Osaka-shi,
Osaka, 541-0042
http://www.mitsuicredit.com
pr@mitsuicredit.com
81662534321
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