Consumer prices in Japan fell in March compared to the same month in 2008 to 0.1%. It is a clear manifestation of deflationary trends recorded in the second-largest economy of the world for the first time since September 2007, reported Bloomberg.
Bank of Japan predicts price declines in the next two financial years after a slight raise over the past three years. Japan became the first country that entered into a long period of price decline associated with the global recession, say experts. United States, Europe and China has so far managed to keep its economy on the verge of deflation.
Last time, deflation in Japan lasted from 1999 to 2005.
News of the return period of declining prices overshadowed optimism of investors connected with the restoration of production in the country. Previously, it was reported that industrial production in Japan rose for the first time in 6 months - at 1.6% in March compared to February, despite the fact that the rate remained significantly lower than in the first months of 2008.
At the same time, unemployment in the country rose in March at 0.4 percentage points - up to 4.8% compared to the previous month.
The new data cast a shadow over the optimistic projections of analysts, awaiting transfer to the Japanese economy recovery in this quarter. A number of economists Bloomberg surveyed agency believes that the increase in GDP promproizvodstva Japan may start to rise in April-June, and its growth could reach 1.2% compared to the same period last year. Analysts expect growth of Barclays Bank at 3.7% in the current quarter.
Bank of Japan has been more restrained in their projections: Central Bank expects "moderate recovery" earlier than the second half of this fingoda (ie in the period from September 2009 to 31 March 2010).
"Economic conditions continue to deteriorate in the coming months, but then gradually align, and the growth rate will recover moderately in the second half of fiscal 2009," - says the forecast of the Bank of Japan. Country's GDP will grow by 1.2% in the next financial year starting 1 April 2010, expects the Central Bank
Bank of Japan predicts price declines in the next two financial years after a slight raise over the past three years. Japan became the first country that entered into a long period of price decline associated with the global recession, say experts. United States, Europe and China has so far managed to keep its economy on the verge of deflation.
Last time, deflation in Japan lasted from 1999 to 2005.
News of the return period of declining prices overshadowed optimism of investors connected with the restoration of production in the country. Previously, it was reported that industrial production in Japan rose for the first time in 6 months - at 1.6% in March compared to February, despite the fact that the rate remained significantly lower than in the first months of 2008.
At the same time, unemployment in the country rose in March at 0.4 percentage points - up to 4.8% compared to the previous month.
The new data cast a shadow over the optimistic projections of analysts, awaiting transfer to the Japanese economy recovery in this quarter. A number of economists Bloomberg surveyed agency believes that the increase in GDP promproizvodstva Japan may start to rise in April-June, and its growth could reach 1.2% compared to the same period last year. Analysts expect growth of Barclays Bank at 3.7% in the current quarter.
Bank of Japan has been more restrained in their projections: Central Bank expects "moderate recovery" earlier than the second half of this fingoda (ie in the period from September 2009 to 31 March 2010).
"Economic conditions continue to deteriorate in the coming months, but then gradually align, and the growth rate will recover moderately in the second half of fiscal 2009," - says the forecast of the Bank of Japan. Country's GDP will grow by 1.2% in the next financial year starting 1 April 2010, expects the Central Bank
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