global economy

Official data on Thursday showed an enourmous 15.3% fall in Japanese INDUSTRIAL PRODUCTION from February 2011.  The industrial production change was the biggest comparative decline since records began in 1953.  The fall is not localised to the area around the north-east which was directly hit - that area suffered a c32% fall - the overall decline in output reflected a 13.5% fall in other parts of Japan.

The massive magnitude 9 earthquake and consequent tsunami in Japan on 11 March 2011 is having a negative effect on the Japanese economy.  However, this obvious liklihood that this would be the case was lost on those elected to supervise the economy.  Japan's economy minister Kaoru Yosano had told the FT just days after the earthquake that it would have little impact on Japan’s economy.  

In other news Japanese HOUSEHOLD SPENDING slid an by annual 8.5% in March. So everything appears to fine there too.

The talk now is, of course, how to spend some more borrowed money to pay for reconstruction, and more 'Keynsian' stimulus.

Comments

Popular Posts