Japan unlikely to grow the next quarter by Milota Sidorova

Japan announced its GDP for Q4 rose slightly about 1.1 percent. Although the government proclaims the export is on the growth only few experts suggest the world's second largest economy will continue that way. The country is facing slight deflation. GDP deflator index fell 3.0 percent between October-December 2009.Among general characteristics of Japanese society belong increasing percentage of ageing people, falling wages and significant part of products is dependent on international import. Large gap between supply and demand is influencing the prices downfall. The slowing growth is expected also due cutting public work projects and shifting money into households spending! that is currently rising. This is, however not a quick push for the economy.As for Japan, it is hard to paint a future picture. The fall back into the recession is according economists not very probable. The economy will stand around point zero more likely. Poll posted in Reuters before the official report said Japan was growing 0.3 percent this quarter and 0.4 percent next quarter.The personal consumption has only slowly increased past months. It gained 0.7 percent more than in Q3. The general increase is not expected since the bonuses and extra salaries are not likely to rise in the first six months of the year.The biggest increase during 2009 was between April-June (1.3 percent). The next period until September was under slow down. The expansion in the last quarter was caused by 0.6 percent of domestic demand. The number got that high after seven quarters and contributed mostly from energy-efficient goods. Corporate investment increased 1.0 percent, less than forecaste! d (1.5 percent).

related story (sgx16459): http://www.france24.com/en/20100215-japan-economy-gdp-growth...

by Milota Sidorova for SigEx Ventures (http://sigexventures.com)

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