Tuesday, August 18, 2009

Nippon nippin' on some GDP growth...

The source of the rising sun apparently found a source of economic growth in Q2 in 2009. It could be interpreted in one of two ways depending on your outlook. On the one hand it could be an end to recession (being the first quarter of economic growth (annualised, seasonally adjusted rate of change from previous quarter) since Q1 08). Indeed it is an interruption to the past 4 quarters of deep recession that has befallen the island nation. But then you can add to that and say that that's all there is - i.e. the proverbial dead cat bounce. It's hard to say with precision without seeing the next few quarters! A brief scan of the numbers shows private residential investment way down, ditto private non-resi investment, but its ok cos public investment spiked up (.....). On a higher level Japan has suffered on export basis with its trade surplus falling a lot... it does seem to be benefiting a little from China however. Anyway at this point all I can say is that Q2's result offers promise - Q3 will offer reality.......


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