Japan Declared Economy Revival

The Japanese government has officially declared the economy’s revival in the recent three years.

Takenaka Heijo, the minister of economy and finance, on January 19 announced the economy report of January which was handed in to the cabinet meeting stated “Based on a solid investment tendency on facility and robust exports, Japan’s economy is gradually recovering.”

It is the first time in three years for the Japanese government to use the expression, “Recovering” to categorize its economical status since January 2001.

Koizumi Junichiro, the Japanese premier, remarked on his address to the parliament that “The economic growth rate has turned into practical gains for a year and half, and the downward tendency of the public price is becoming pacified,” showing his first recognition of the economy revival since his inauguration in 2001.

The Japanese government assessed that the companies’ earning rates are increasing due to the increase in production and the active economies of Asian markets such as China and southeastern Asian countries.

In particular, as for the consumption-dwindling phenomenon which has been regarded as a nuisance to the Japanese economy, “The sales of digital home appliance are steadily increasing,” remarked the Japanese government, correcting its previous comment of “Forming a solid base” into “Observing the improving movement.”

According to the credit research agencies, for the first time in four years, the number of bankruptcy cases among Japanese companies has been reduced 14.6 percent from 16,624 in 2003.

Grounding on these statistical facts, Minister Takenaka expected that the effect of economy revival would influence the household economy, saying, “Together with the revival of the world economy, the Japanese economy will continue to rise.”

The Japanese government has decided to maintain the mood of economy revival, setting its target growth rate in 2004 as 1.8 percent for substantial and 0.5 percent for titular.

However, some experts have pointed out that declaration of the economy revival is quite early, owing to the stiff consuming atmosphere in the public and the consummate unemployment rate remaining at the five percent level. “Unless improvement of income in the conglomerates spreads out to the household, small companies, and local economy world, the lasting economy revival cannot be easily achieved,” anticipated Nihongeizai Shimbun.

parkwj@donga.com