[Marxism] Japan's economy in deepest plunge since records kept (1955)

["Fred Feldman" <ffeldman@xxxxxxxxxxxxxxxx>]

Japan's economy in record plunge
BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/8058708.stm
Published: 2009/05/20 06:05:58 GMT
 
Japan's economy during the first three months of 2009 shrank at its quickest
pace since records began, as exports slumped, officials figures have shown. 

Output in the world's second largest economy contracted by 4% during the
period, or by 15.2% on an annual basis. 

Japan's economy, which depends heavily on exports, has been hit hard by the
global downturn. 

But economists predict a modest growth in the coming months, after a small
rise in production in March. 

The figures from the Cabinet Office show that this is the fourth quarterly
fall in gross domestic product (GDP) in a row, after a 3.8% contraction
between October and December 2008. 

'Weakness spreading' 

The BBC's Roland Buerk in Tokyo says people around the world are buying
fewer of the cars and electronic gadgets that Japan is renowned for. 

In the first quarter of this year, Japanese exports declined by 26%. 

"Weakness in the corporate sector is gradually spreading to households,"
Prime Minister Taro Aso said during a budget hearing to Parliament. 

"This is a very serious situation, so we need to respond appropriately." 

Investment in factories and equipment dropped by 10.4% in the first quarter,
a sign that firms are reducing their outlay. Consumer spending fell by 1.1%
during the same period. 

"The savings rate has gone up and that has worsened the severity of the
recession," said Richard Jerram, head economist at Macquarie Securities in
Tokyo. 

"It seems the public has basically panicked about job security to an an
extent that hasn't happened in previous cycles," he added. 

The latest contraction is the biggest since records began in 1955. 



________________________________________________
YOU MUST clip all extraneous text when replying to a message.
Send list submissions to: Marxism@xxxxxxxxxxxxxxxxxxx
Set your options at: 
http://lists.econ.utah.edu/mailman/options/marxism/archive%40archives.econ.utah.edu