Global Credit Crisis Takes Hold In Japan

[suchandra]

Could be that Japan's finance minister overslept the adjustement of the Yen. Psychologically other nations imagine they're safe, Japan is worse.

Fallacy with remote damages.

 

Global credit crisis takes hold in Japan

 

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/23/cnjap123.xml

Last Updated: 11:42pm BST 22/07/2008

 

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Japan is pinning its hopes on judo gold medallist Ryoko Tani in the 2008 Beijing Olympics next month, but at home the economy looks off balance.

 

The government yesterday slashed its forecast for economic growth for this fiscal year to 1.3pc, as soaring commodity and food costs hit companies and consumers.

<table width="268" align="right" border="0" cellpadding="0" cellspacing="0" hspace="0"><tbody><tr><td rowspan="2" width="8"> </td><td width="260"><center></center></td></tr><tr><td class="caption"><center> China Olympics medal hope Ryoko Tani

 

</center></td></tr></tbody></table>In January, the Cabinet Office had predicted that Asia's largest economy would grow by 2pc in the current fiscal year to March.

 

However, business investment and household spending have been weaker than expected since that forecast was made.

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Japanese finance minister, Fukushiro Nukaga, said: "There are concerns about the prospect of the real US economy entering a recession, and it's unavoidable that any US slowdown would have an impact on the world economy."

Japan's economy is on the mend from a slump stretching back more than a decade, but analysts say rising energy and raw material costs in addition to falling exports to the US are putting the brakes on the recovery.