JAPAN’S ANNUAL MONEY SUPPLY GROWTH RATE
In November, Japan’s industrial production increased output of cars for foreign customers. However, the nation’s retail sales continued to fall. The output of Japan’s factories and mines gained significantly. The output will reinforce expectations that recover in overseas demand. The various efforts could help prevent Japan’s economy from going back into recession of growth.
The works of the U.S. and China will continue the upward trend in output thanks to the demands. Manufacturers are expecting their output to rise 3.4 % in December. However, other data shows that Japan’s domestic demand remains weak. This will keep the nation’s recovery vulnerable to slowdown in overseas growth. Japan had fifteen straight months of decline from the trade ministry, but automobile sales continued to jump. Japan’s industrial output is their main growth to drive their economy.
The demand side of the economy will deteriorate, because of falling salaries and bonuses. This means that Japan’s economy will lose power if overseas economies take a turn for the worse. In April of 1990, Japan’s unemployment rate fell. The job rate fell 4.5 percent to 4.4 percent and this was Japan’s lowest level. The employment prospects were finally encouraging consumers to spend after years of having a tight grip on their cash.
The 1990 has, reflects on broader recovery than any of the upturns lived. The early turnarounds did not include the economy’s finance and retail mostly exports. The banks have gotten rid of the bad loans that lingered around their profits. The recoveries did not bring the unemployment rate down because they were too short term and not broad enough. Japan’s unemployment rate has been steadily dropping from 5.5 percent in 2003; they tried to trim work forces to raise profits.
Recent data showed an increase in full-time workers, and many companies are replacing full-time workers, part-time workers and contract workers. A nine-year decline in income is finally ending.
When goods and services are produced by, Japanese companies this increases prices and higher wages, which leads to more spending in the economy. Like the rest of the world, Japan has in fact been experiencing inflation. The Bank of Japan increased its annual inflation rate to 1.8% from 1.1%. Japan will increase in consumer prices (goods and services) which should lead to higher company profits and wages, and domestic...