Japanese economy ‘at standstill’

The Japanese economy is at a standstill, Japan’s government has said, as concerns about the strong yen continue to grow.

The recovery in the economy was “pausing”, the Cabinet Office said in a monthly statement.

It is the most negative the government has been about the economy in nearly two years.

The rising yen and a slowdown in global demand for Japanese exports was blamed for the downgrade.

In recent months, the government has insisted that the economy is “picking up”.

But it said it now expected the economy to remain weak for some time, with “weakening” exports a chief concern.

It said shipments to Asia in particular were becoming weaker, further hitting exporters that are already suffering from the strong yen.

http://www.bbc.co.uk/news/business-11571644

 

 

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About ameyabadwe
Diehard Chelsea FC fan! Indian living in Thailand!

2 Responses to Japanese economy ‘at standstill’

  1. I’m no economist (actually I’m still a high school student), but what do you think about a revaluation of the yen to get Japan’s economy back in order?

    Such would, of course, be only one of many things Japan has to do.

    http://savingjapan.wordpress.com/2010/10/20/brainstorming-what-if-they-revalued-the-%E5%86%86jpy%C2%A5yen/

    • ameyabadwe says:

      Hi, I am a High School student too. But check out my new article. It should put into perspective your question. Maybe a revaluation is not in best interests as this would make the Yen stronger. They would hope to make the Yen, weaker. They would want to ensure that they attract investors and hence they might want to “devalue” the yen. It is better explained in the new article.

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