Japan's economy were breached second recession alert

The Government of Japan at the moment is just out of the recession in the mire was second on the base of the economy of Japan: too busy to even think of the new economic stimulus plan released to complement market liquidity, to issue new bonds ... To a variety of means of defusing deflation and the Japanese Yen was strong two major challenges. There are indications that Japan's economic future recovery of unspeakable optimistic.

Overview of Japan's economy throughout the year, from the beginning of the year the Government report warning "rapid deterioration" of recession, to years "bottomed out", the gross domestic product (GDP) of the second and third quarters, respectively, the ring than 0.7 percent and 1.2%. From the major economic data, Japan's economy will continue to improve, maintain three consecutive quarter of growth in the basic no suspense. Where export of warmer and government economic stimulus spending is out of the Japan economic recession in the quagmire of two great hero.

However, Japan series the better economic data are generally considered a "looks beautiful." The actual national life situation has not improved significantly, the economic environment is also gradually deteriorate, deflation and exchange rate issues are let Japan enterprises face enormous pressure to survive.

Now, Japan's first and foremost a deflation.

Japan's Cabinet Office recently released the monthly economic report, Japan's economy is getting better, but the lack of self-recovery. These are questions that wins the insufficient domestic demand. Consumption data although slight growth during the year, but by the experts as consumers seize policy opportunities, early release consumption capacity. Question of policy factors after the exit, take the c bases grain consumption behavior will no longer exist, the consumer may fall into more serious downturn.

Waseda University Professor believes that fiscal stimulus policies effect disappears, Japan and the United States and other developed countries face the biggest problems is insufficient demand. The salaries of employees in Japan now has been declining, this winter bonuses last year dropped about 10%, while the Government's efforts to use policies to stimulate consumption, but civil consumption still weak, the economy will have a negative impact.

Long-term deflation may result in Japan's economy was in prices, the vicious cycle of economic deterioration. Riyin review member shall tianmei vector child warned that if prices lasts longer than expected, possibly resulting in corporate earnings decline, consumption stagnated, and thereby undermine the real economy, and ultimately increase the deflationary spiral ' rise of the ' risk.

The yen also let Japan enterprises face enormous pressure to survive, just like a knife stabbed in Japan has not yet been restored fully on economic disease. Because Japan export-oriented enterprises, with a high degree of external dependencies, Yen higher suppressing export enterprise benefits. Nomura Securities previously published reports indicate that Japan domestic main 400 corporate profits are expected to be fiscal 2009 compared with the previous fiscal year to reduce 9.5%, but the result is an average 93.7 Yen to 1 US dollar exchange rate. Japanese Yen to US dollar exchange rate appreciation 1 yen each, then Enterprise annual profit drop 1.6 percentage will be expanded. Business conditions worsen, will push high unemployment. Japan residents lost work, nature can't expand consumption, this will increase the grim domestic demand situation, deflation situation will deteriorate.

According to the Japan economic news, 21, reported that the newspaper has published a survey of the "100," the results show that because of the yen and the policy is ambiguous, worried about the economic downturn again operators accounted for respondents 47.2%, when compared with the September survey has increased by 10 percentage points. The United Nations Economic and Social Affairs at the beginning of this month's release of the 2010 World economic situation and Outlook report forecast that economic growth in Japan next year, an increase is expected to slow only 0.9%.

In the face of "recessions" risk increased reality, Japan Government launched a $ 24.4 trillion yen (US $ 1 estimated 89.4 yen) economic stimulus plan. This project is mainly related to employment, environmental protection, financing and support of local government and the people's livelihood, and other fields. To this end, the Government of Japan through financial means into 7.2 trillion yen, and its inclusion in the 2009 fiscal year of the second supplementary budget. But the huge stimulus package so that the Government had to bear a greater financial burden. Japan Government recently adopted fiscal 2009 second supplementary budget for the programme, on the basis of the budget for the programme, the fiscal 2009 projected revenue 36.9 trillion yen, Japan Government will therefore be a new episode 9.34 trillion yen bonds. The Asian Development Bank Chief Economist Lee Jong and noted that the Japan Government launches new economic stimulus plan, will undoubtedly support the current weak recovery, but the implementation of economic stimulus plan of the Government debt of the same concern.