ID :
41741
Tue, 01/20/2009 - 20:43
Auther :
Shortlink :
https://oananews.org//node/41741
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Gov't says economy 'worsening rapidly,' cuts view for 4th month
TOKYO, Jan. 20 Kyodo -
Japan's economy ''is worsening rapidly'' due to steep declines in exports and
industrial production amid a sharp downturn in the world economy, the
government said Tuesday, cutting its economic assessment for the fourth
straight month for the first time since 2001.
In its latest monthly economic report, the Cabinet Office adopted the
description of ''rapid'' deceleration for its overall economic assessment for
the first time since data became available in 1975. In December, it used the
term ''worsening'' for the first time since February 2002.
The January report said the nation's exports and output are ''decreasing very
substantially,'' reflecting production cutbacks by automakers and other
manufacturers. It also revised down its evaluation on personal spending for the
first time in three months.
''As the world economy slows further, conditions of Japan's corporate sector
have been deteriorating at an unusually high speed,'' Economic and Fiscal
Policy Minister Kaoru Yosano said Tuesday. ''Private consumption has also been
weakening amid rapid employment adjustments and weak income growth.''
The minister told a press conference that various economic indicators in Japan
clearly show a worsening trend in the economy.
He said it will be ''impossible'' for the world economy to recover in a few
months, referring to recent dives in U.S. consumption and imports that will
negatively affect production activities.
Yosano expected that the incoming U.S. administration of Barack Obama will
implement policy steps to create effective demand.
''The speed of decline in Japan's production and exports exceeds that in the
previous economic downturn in 2001 caused by the bursting of the information
technology bubble and is almost unprecedented,'' a Cabinet Office official
said.
In December, the office said exports are ''decreasing'' and industrial output
is ''decreasing substantially.''
The latest report said private consumption ''has been in a weak tone
recently,'' compared with the December paper which said personal spending ''is
almost flat'' but ''some weak movements have been seen lately.''
The Cabinet Office official denied the possibility of a quick recovery for the
Japanese economy, saying, ''Even if overseas economies pick up, domestic
conditions will not likely hit bottom soon afterwards because pressures for
inventory adjustments will grow.''
Another official said there are many elements of uncertainty and downside risks
in 2009, as the U.S.-triggered financial crisis may further worsen and prolong
the ongoing global economic woes.
In January, the Cabinet Office also lowered its assessment of Japan's housing
starts and imports, saying they have been declining, and pointed out that the
nation's deficit in the merchandise and services trade balance has been on the
rise.
The office left unchanged its view that the employment situation ''is getting
rapidly worse,'' with one official pointing out that grim employment conditions
amplify downside risks in private consumption.
The report also kept its evaluations on the nation's corporate profits and
business investment, saying profits are ''falling substantially'' and capital
spending is ''decreasing.''
As for short-term prospects, the paper repeated the view in December, saying
that there is ''fear that the rapid reduction in production will lead to
significant employment adjustment.''
On the global economy, the Cabinet Office downgraded its assessment for the
fifth consecutive month, due to a ''further slowdown'' in business conditions
in the rest of Asia.
The office lowered its assessment of economic conditions in the rest of Asia to
the worst level since it began evaluations on the region in 2001, citing
plunges in production and exports in such economies as South Korea, Taiwan and
Singapore.
It kept the evaluations for the U.S. and European economies, repeating they are
in recession and that conditions could become even severer due to the financial
crisis.
The government retained its assessment of the Chinese economy, saying it is
''slowing.''
==Kyodo
Japan's economy ''is worsening rapidly'' due to steep declines in exports and
industrial production amid a sharp downturn in the world economy, the
government said Tuesday, cutting its economic assessment for the fourth
straight month for the first time since 2001.
In its latest monthly economic report, the Cabinet Office adopted the
description of ''rapid'' deceleration for its overall economic assessment for
the first time since data became available in 1975. In December, it used the
term ''worsening'' for the first time since February 2002.
The January report said the nation's exports and output are ''decreasing very
substantially,'' reflecting production cutbacks by automakers and other
manufacturers. It also revised down its evaluation on personal spending for the
first time in three months.
''As the world economy slows further, conditions of Japan's corporate sector
have been deteriorating at an unusually high speed,'' Economic and Fiscal
Policy Minister Kaoru Yosano said Tuesday. ''Private consumption has also been
weakening amid rapid employment adjustments and weak income growth.''
The minister told a press conference that various economic indicators in Japan
clearly show a worsening trend in the economy.
He said it will be ''impossible'' for the world economy to recover in a few
months, referring to recent dives in U.S. consumption and imports that will
negatively affect production activities.
Yosano expected that the incoming U.S. administration of Barack Obama will
implement policy steps to create effective demand.
''The speed of decline in Japan's production and exports exceeds that in the
previous economic downturn in 2001 caused by the bursting of the information
technology bubble and is almost unprecedented,'' a Cabinet Office official
said.
In December, the office said exports are ''decreasing'' and industrial output
is ''decreasing substantially.''
The latest report said private consumption ''has been in a weak tone
recently,'' compared with the December paper which said personal spending ''is
almost flat'' but ''some weak movements have been seen lately.''
The Cabinet Office official denied the possibility of a quick recovery for the
Japanese economy, saying, ''Even if overseas economies pick up, domestic
conditions will not likely hit bottom soon afterwards because pressures for
inventory adjustments will grow.''
Another official said there are many elements of uncertainty and downside risks
in 2009, as the U.S.-triggered financial crisis may further worsen and prolong
the ongoing global economic woes.
In January, the Cabinet Office also lowered its assessment of Japan's housing
starts and imports, saying they have been declining, and pointed out that the
nation's deficit in the merchandise and services trade balance has been on the
rise.
The office left unchanged its view that the employment situation ''is getting
rapidly worse,'' with one official pointing out that grim employment conditions
amplify downside risks in private consumption.
The report also kept its evaluations on the nation's corporate profits and
business investment, saying profits are ''falling substantially'' and capital
spending is ''decreasing.''
As for short-term prospects, the paper repeated the view in December, saying
that there is ''fear that the rapid reduction in production will lead to
significant employment adjustment.''
On the global economy, the Cabinet Office downgraded its assessment for the
fifth consecutive month, due to a ''further slowdown'' in business conditions
in the rest of Asia.
The office lowered its assessment of economic conditions in the rest of Asia to
the worst level since it began evaluations on the region in 2001, citing
plunges in production and exports in such economies as South Korea, Taiwan and
Singapore.
It kept the evaluations for the U.S. and European economies, repeating they are
in recession and that conditions could become even severer due to the financial
crisis.
The government retained its assessment of the Chinese economy, saying it is
''slowing.''
==Kyodo
