Growth Engine China
November 19th, 2009
A couple weeks ago the IMF figured Japan’s annualized growth rate for 2010 at about 1.7 percent, way ahead of 2.6 percent estimate of a survey of economists. With the latest news that Japan just announced an annualized growth rate of 4.8 percent for this year, it looks like the IMF low-balled the figure. Apparently, Japan’s growth came from rebuilding depleted inventories, growth in consumer activity, and export sales to China.
It was China’s roaring growth in the early 2000′s that lifted Japan out of the doldrums after more than a decade of stagnant activity. Now, it looks like China – or rather, the Chinese consumer – just may do the same for Japan again.
The IMF may be wrong again about the growth figures for other Asian countries: as China’s economy gets its legs back under it exports of raw materials from its neighbors – ranging from wood through copper – will pick up the entire neighborhood for the foreseeable future.
Further reading:
IMF sharply improves Asia economic forecast:
Japan grows at fastest pace in over two years:
Asia Pacific regional economic outlook
A couple weeks ago the IMF figured Japan’s annualized growth rate for 2010 at about 1.7 percent, way ahead of 2.6 percent estimate of a survey of economists. With the latest news that Japan just announced an annualized growth rate of 4.8 percent for this year, it looks like the IMF low-balled the figure. Apparently, Japan’s growth came from rebuilding depleted inventories, growth in consumer activity, and export sales to China.
It was China’s roaring growth in the early 2000′s that lifted Japan out of the doldrums after more than a decade of stagnant activity. Now, it looks like China – or rather, the Chinese consumer – just may do the same for Japan again.
The IMF may be wrong again about the growth figures for other Asian countries: as China’s economy gets its legs back under it exports of raw materials from its neighbors – ranging from wood through copper – will pick up the entire neighborhood for the foreseeable future.
IMF sharply improves Asia economic forecast: http://www.ft.com/cms/s/0/f311c43a-c45c-11de-912e-00144feab49a.html
Japan grows at fastest pace in over two years: http://www.ft.com/cms/s/0/63fab858-d24c-11de-a0f0-00144feabdc0.html
Asia Pacific regional economic outlook: http://www.imf.org/external/pubs/ft/reo/2009/apd/eng/areo1009.pdfGrowth Engine China
A couple weeks ago the IMF figured Japan’s annualized growth rate for 2010 at about 1.7 percent, way ahead of 2.6 percent estimate of a survey of economists. With the latest news that Japan just announced an annualized growth rate of 4.8 percent for this year, it looks like the IMF low-balled the figure. Apparently, Japan’s growth came from rebuilding depleted inventories, growth in consumer activity, and export sales to China.
It was China’s roaring growth in the early 2000′s that lifted Japan out of the doldrums after more than a decade of stagnant activity. Now, it looks like China – or rather, the Chinese consumer – just may do the same for Japan again.
The IMF may be wrong again about the growth figures for other Asian countries: as China’s economy gets its legs back under it exports of raw materials from its neighbors – ranging from wood through copper – will pick up the entire neighborhood for the foreseeable future.
IMF sharply improves Asia economic forecast: http://www.ft.com/cms/s/0/f311c43a-c45c-11de-912e-00144feab49a.html
Japan grows at fastest pace in over two years: http://www.ft.com/cms/s/0/63fab858-d24c-11de-a0f0-00144feabdc0.html
Asia Pacific regional economic outlook: http://www.imf.org/external/pubs/ft/reo/2009/apd/eng/areo1009.pdf
