Japan: export dip but trade surplus in July was $946 million
Lee Jay Walker
Modern Tokyo Times
Riots in the United Kingdom, chaos in Greece, endless circle of economic problems in America and millions lost their homes in recent years. However, despite all the doom and gloom mentioned about Japan this nation once more shows its resilience and announces a large trade surplus in July.
Therefore, despite the over-hyped scare mongers and the devastating events of March 11 it is clear that the economy of Japan is bouncing back. Also, it is abundantly clear that the ineptness of Japanese politics is not infringing on the major company powerhouses in Japan because they are the real power brokers.
Of course Japan faces major debt problems but the reserves of Japan are enormous and even in such a tumultuous year this nation still assisted the European Union by investing heavily. Also, the over-valued yen which is too strong and not realistic based on realism may create many problems for Japan but it also opens up new opportunities.
The BBC highlighted that Japan’s trade surplus is boosting optimism that an economic recovery is ongoing. However, the BBC also noted that exports had fallen and that this may indicate that demands for Japanese products are suffering in key international markets.
It must be stated that production issues for some Japanese companies were caused by the devastating earthquake and tsunami. Also, the global economy is clearly not buoyant and this notably applies to America and many nations in the European Union.
Recent economic data from China and the Russian Federation also hint at problems underneath the surface which may worsen given the current worldwide economic malaise.
Naomi Fink, a Japanese strategist at Jeffries and who is based in Tokyo, commented that “…while the export figures were not as good as hoped there were still signs of recovery shining through…….Japanese firms have shown a bounce back, even if company profits and growth may not be as strong as in the boom years of 2000…. (however) There are a few more months of recovery to go.”
“The strong yen that hurts the export side is also helping to keep the price of imports in check”
It is often reported that Japan is in economic meltdown but the resilience of this nation keeps on proofing many individuals wrong. Also, the riots in the United Kingdom and millions of people losing their homes in recent times in America, shows you that the Japanese model is based on cushioning social ills and maintaining low unemployment figures.
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