Japan is no longer the third-largest economy in the world.

The Asian country has lost that position to Germany, after contracting&nbsp;for the last six months of 2023 and consequently&nbsp;slipping into&nbsp;a recession.

Latest data shows&nbsp;that Japan's economy unexpectedly shrank in the October-December quarter due to weak domestic demand.

Japan's economy is now smaller than Germany's. Japan's nominal GDP of&nbsp;$4.2106 trillion&nbsp;is smaller than Germany's $4.4561 trillion, as per local media reports.

Japan's gross domestic product or GDP fell 0.4 per cent in the October-December period, after a 3.3 per cent slump between July and September.&nbsp;&nbsp;

Market analysts expected a 1.4 per cent growth in the final three months of 2023.&nbsp;

Two consecutive quarters of contraction are typically considered the definition of a technical recession.

For the full year, Japan's economy grew 1.9 per cent,&nbsp;higher than the 1.1 per cent growth recorded in 2022.&nbsp;

Private consumption, which makes up over half of Japan's economic activity, fell 0.2 per cent. Capital expenditure, another key private-sector growth engine, fell 0.1 per cent.

Nevertheless, external demand, which is exports minus imports, contributed 0.20 per cent to GDP as exports rose 2.6 per cent from the July-September quarter.

A weak yen in comparison to the US dollar has helped Japan expand its exports.

Moreover, there is a risk that the economy could continue to shrink in the January-March quarter this year.

Analysts say there are&nbsp;three big reasons for the downside risks: slowing global growth, weak domestic demand and the impact of the new year quake in western Japan.

Impact on ultra-easy monetary policy

The weak economic data has raised uncertainty about the Bank of Japan's plan&nbsp;to exit its ultra-easy monetary policy this year.

An ultra-easy monetary policy has been the hallmark of Japan's banking system for the last three decades, marked by negative interest rates.&nbsp;

A Reuters report states that Japan's central bank has been laying the groundwork to overhaul its ultra-easy monetary policy by April.

Sources, however, suggest that it is likely to go slow on any subsequent policy tightening as risks persist.

The latest data did not have a major impact on the stock market. In fact, the benchmark index, Nikkei, rose one per cent, reversing some of its losses made from the previous session.&nbsp;&nbsp;

The stock market possibly rose on expectations the central bank may continue with its easy money policy for some more time.

(With inputs from Reuters)

Japan is no longer the third-largest economy in the world. The Asian country has lost that position to Germany, after contracting for the last six months of 2023 and consequently slipping into a recession.

Japan is no longer the third-largest economy in the world. The Asian country has lost that position to Germany, after contracting for the last six months of 2023 and consequently slipping into a recession. Latest data shows that Japan's economy unexpectedly shrank in the October-December quarter due to weak domestic demand. Japan's economy is now smaller than Germany's. Japan's nominal GDP of $4.2106 trillion is smaller than Germany's $4.4561 trillion, as per local media reports. Japan's gross domestic product or GDP fell 0.4 per cent in the October-December period, after a 3.3 per cent slump between July and September. Market analysts expected a 1.4 per cent growth in the final three months of 2023. Two consecutive quarters of contraction are typically considered the definition of a technical recession. For the full year, Japan's economy grew 1.9 per cent, higher than the 1.1 per cent growth recorded in 2022. Private consumption, which makes up over half of Japan's economic activity, fell 0.2 per cent. Capital expenditure, another key private-sector growth engine, fell 0.1 per cent. Nevertheless, external demand, which is exports minus imports, contributed 0.20 per cent to GDP as exports rose 2.6 per cent from the July-September quarter. A weak yen in comparison to the US dollar has helped Japan expand its exports. Moreover, there is a risk that the economy could continue to shrink in the January-March quarter this year. Analysts say there are three big reasons for the downside risks: slowing global growth, weak domestic demand and the impact of the new year quake in western Japan. Impact on ultra-easy monetary policy The weak economic data has raised uncertainty about the Bank of Japan's plan to exit its ultra-easy monetary policy this year. An ultra-easy monetary policy has been the hallmark of Japan's banking system for the last three decades, marked by negative interest rates. A Reuters report states that Japan's central bank has been laying the groundwork to overhaul its ultra-easy monetary policy by April. Sources, however, suggest that it is likely to go slow on any subsequent policy tightening as risks persist. The latest data did not have a major impact on the stock market. In fact, the benchmark index, Nikkei, rose one per cent, reversing some of its losses made from the previous session. The stock market possibly rose on expectations the central bank may continue with its easy money policy for some more time. (With inputs from Reuters)

Japan slips into recession, overtaken by Germany as third largest economy

Ah, the good old days when Japan was the talk of the economic town, and Sony products were the cool kids on the block. Born in the '90s, I vividly recall a time when the mere thought of a Sony Walkman had us all daydreaming. Fast forward to today, and it seems like my collection of outdated Sony gadgets is more of a nostalgia trip than a testament to cutting-edge tech. 
 
Rewinding Back to Japan's Economic Peak 
 
Back in the late 20th century, Japan was the economic superhero, flexing its muscles with technological marvels, sleek automobiles, and a manufacturing prowess that left the world in awe. But, oh boy, did the bubble burst in the '90s! The economic party took a nosedive, leaving a lingering period of stagnation and deflation. 
 
Japan's economic playlist took a hit from all sides. The burst of the asset price bubble, an aging population, and a corporate structure that resisted innovation. Global competition, especially from emerging players like China, added a twist to Japan's economic saga. 
 
Sony's Glory Days From My Personal Walkman Chronicles 
 
Now, let's talk Sony—the brand that once made me the envy of the neighborhood. My first Walkman was a treasure; I practically wore it like a badge of honor. The sleek music players are long gone, but back then, it was my musical escape. 
 
Sony, born in 1946, didn't just make gadgets, it crafted experiences. From the Walkman era to the PlayStation frenzy, Sony was the cool older sibling of the tech world. My first PlayStation was a rush like no other—hours spent immersed in virtual worlds, conquering levels and forming friendships over multiplayer games. 
 
But then came the 21st century, and Sony found itself in a game where the rules kept changing. Apple and the gang showed up, and suddenly, my allegiance to Sony wavered. Now, if you ask me which PlayStation version is in production, I'd probably draw a blank. The gaming world evolved, and so did gaming preferences. 
 
The decline of Sony's smartphone empire hit close to home. I remember when owning a Sony phone felt like holding a piece of the future. Fast forward, and my sleek Sony phone faced fierce competition from Apple's iPhone and a whole parade of Chinese tech contenders. 
 
Sony's struggle to snag a piece of the smartphone pie mirrored Japan's broader economic challenges. The corporate culture in Japan seemed to resist change and innovation, hindering Sony's groove in the face of evolving consumer tastes. 
 
As a '90s kid, I've seen the rise and fall—a rollercoaster ride of economic highs and technological lows. Japan, still a powerhouse, is at a crossroads, wrestling with the need for change and innovation. 
 
The fall of Sony, a brand that once fueled our aspirations, serves as a wake-up call. Agility and adaptability, I've learned, are the keys to staying in the game. As we look back on these Flashback Fridays, it's not just about remembering the Walkman days but understanding the importance of staying in tune with the times.

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Ah, the good old days when Japan was the talk of the economic town, and Sony products were the cool kids on the block. Born in the '90s, I vividly recall a time when the mere thought of a Sony Walkman had us all daydreaming.

Ah, the good old days when Japan was the talk of the economic town, and Sony products were the cool kids on the block. Born in the '90s, I vividly recall a time when the mere thought of a Sony Walkman had us all daydreaming. Fast forward to today, and it seems like my collection of outdated Sony gadgets is more of a nostalgia trip than a testament to cutting-edge tech. Rewinding Back to Japan's Economic Peak Back in the late 20th century, Japan was the economic superhero, flexing its muscles with technological marvels, sleek automobiles, and a manufacturing prowess that left the world in awe. But, oh boy, did the bubble burst in the '90s! The economic party took a nosedive, leaving a lingering period of stagnation and deflation. Japan's economic playlist took a hit from all sides. The burst of the asset price bubble, an aging population, and a corporate structure that resisted innovation. Global competition, especially from emerging players like China, added a twist to Japan's economic saga. Sony's Glory Days From My Personal Walkman Chronicles Now, let's talk Sony—the brand that once made me the envy of the neighborhood. My first Walkman was a treasure; I practically wore it like a badge of honor. The sleek music players are long gone, but back then, it was my musical escape. Sony, born in 1946, didn't just make gadgets, it crafted experiences. From the Walkman era to the PlayStation frenzy, Sony was the cool older sibling of the tech world. My first PlayStation was a rush like no other—hours spent immersed in virtual worlds, conquering levels and forming friendships over multiplayer games. But then came the 21st century, and Sony found itself in a game where the rules kept changing. Apple and the gang showed up, and suddenly, my allegiance to Sony wavered. Now, if you ask me which PlayStation version is in production, I'd probably draw a blank. The gaming world evolved, and so did gaming preferences. The decline of Sony's smartphone empire hit close to home. I remember when owning a Sony phone felt like holding a piece of the future. Fast forward, and my sleek Sony phone faced fierce competition from Apple's iPhone and a whole parade of Chinese tech contenders. Sony's struggle to snag a piece of the smartphone pie mirrored Japan's broader economic challenges. The corporate culture in Japan seemed to resist change and innovation, hindering Sony's groove in the face of evolving consumer tastes. As a '90s kid, I've seen the rise and fall—a rollercoaster ride of economic highs and technological lows. Japan, still a powerhouse, is at a crossroads, wrestling with the need for change and innovation. The fall of Sony, a brand that once fueled our aspirations, serves as a wake-up call. Agility and adaptability, I've learned, are the keys to staying in the game. As we look back on these Flashback Fridays, it's not just about remembering the Walkman days but understanding the importance of staying in tune with the times. WATCH WION LIVE HERE

Flashback Friday | Navigating Japan's Economic Rollercoaster Through My Sony Time Capsule

Japan, a country known for its rich history and technological prowess, is moving towards a more equitable evolution. Join us as we explore the compelling journey of women in science and technology, breaking barriers, unlocking innovation, and potentially steering japan toward a brighter, more inclusive future.

Japan: Advancing tech landscape with women in science & technology | WION Newspoint

A future where women drive Japan's economic growth | World Business Watch

Toyota Motor has reported a remarkable surge in its second-quarter profit, more than doubling its earnings while significantly revising its full-year outlook. The substantial boost in profits is attributed to a weaker yen currency, which has amplified the impact of robust global sales. &nbsp;

The world's top-selling automaker, unveiled a record operating profit of 1.44 trillion yen ($9.5 billion) in the quarter ending September, marking a 155.6 per cent increase from the previous year.&nbsp;

This surge in earnings is driven by increased sales across all global regions, encompassing the United States, Asia, and Toyota's home market. Over the first six months of this fiscal year, Toyota witnessed a surge in car sales when compared to the same period a year earlier, reaffirming its strong position in the global automotive market.&nbsp;

While Toyota has faced criticism for its perceived hesitance in embracing battery electric vehicles (EVs), the company embarked on a significant overhaul of its EV strategy in June. Toyota made a substantial commitment to enhance the driving range and reduce the costs of electric vehicles. &nbsp;

Market sentiment appears to be rallying around this new strategy, and Toyota is experiencing renewed interest in its line-up of gasoline-electric hybrids. This resurgence in hybrid interest coincides with a recent decline in enthusiasm for pure EVs, particularly in the United States, where consumers grapple with higher financing costs.&nbsp;

Hybrids continue to make up over 90 per cent of Toyota's electrified car sales. In the quarter ending September, hybrid sales experienced a substantial 41 per cent increase, totalling 888,000 vehicles. This surge in hybrid sales indicates the continued demand for these vehicles, which tend to be more cost-effective than some battery-powered EVs.&nbsp;

Despite Toyota's performance, analysts have highlighted a set of challenges that lie ahead, particularly in the Chinese market. In China, the rapid ascent of domestic EV manufacturers and the swift transition to battery-powered vehicles have posed difficulties for companies like Nissan Motor and Honda Motor. &nbsp;

According to Reuters, Chief Financial Officer Yoichi Miyazaki acknowledged that China is currently experiencing a "very severe price competition," particularly concerning battery EVs.&nbsp;

Additionally, Toyota faces competitive challenges in Southeast Asian markets such as Thailand, where a surge in Chinese investments, driven by the increasing demand for EVs, has led to intense competition. &nbsp;

Despite this, Toyota is determined to navigate these competitive landscapes as it aims to further its growth plans. The company recently announced an $8 billion boost in investment in a North Carolina plant focused on manufacturing batteries for hybrids, plug-in hybrids, and full-battery vehicles.&nbsp;

Toyota's second-quarter results have led to an upward revision of its full-year profit forecast. The company now expects a full-year profit of 4.5 trillion yen, up from the previous projection of 3 trillion yen. The favourable impact of foreign exchange rates, attributed to a weaker yen, plays a significant role in this revised profit outlook. &nbsp;

The company assumed an average rate of 141 yen per dollar for its calculations for the 2023-24 financial year, compared to the previous rate of 125 yen per dollar.&nbsp;

Additionally, Toyota has announced a 100 billion yen share buyback program, and its shares gained 4.7 per cent following the release of these results, contributing to a 2.4 per cent increase in Japan's benchmark Nikkei index.&nbsp;

(With inputs from Reuters)&nbsp;

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Toyota Motor has reported a remarkable surge in its second-quarter profit, more than doubling its earnings while significantly revising its full-year outlook. The substantial boost in profits is attributed to a weaker yen currency, which has amplified the impact of robust global sales.

Toyota Motor has reported a remarkable surge in its second-quarter profit, more than doubling its earnings while significantly revising its full-year outlook. The substantial boost in profits is attributed to a weaker yen currency, which has amplified the impact of robust global sales. The world's top-selling automaker, unveiled a record operating profit of 1.44 trillion yen ($9.5 billion) in the quarter ending September, marking a 155.6 per cent increase from the previous year. This surge in earnings is driven by increased sales across all global regions, encompassing the United States, Asia, and Toyota's home market. Over the first six months of this fiscal year, Toyota witnessed a surge in car sales when compared to the same period a year earlier, reaffirming its strong position in the global automotive market. While Toyota has faced criticism for its perceived hesitance in embracing battery electric vehicles (EVs), the company embarked on a significant overhaul of its EV strategy in June. Toyota made a substantial commitment to enhance the driving range and reduce the costs of electric vehicles. Market sentiment appears to be rallying around this new strategy, and Toyota is experiencing renewed interest in its line-up of gasoline-electric hybrids. This resurgence in hybrid interest coincides with a recent decline in enthusiasm for pure EVs, particularly in the United States, where consumers grapple with higher financing costs. Hybrids continue to make up over 90 per cent of Toyota's electrified car sales. In the quarter ending September, hybrid sales experienced a substantial 41 per cent increase, totalling 888,000 vehicles. This surge in hybrid sales indicates the continued demand for these vehicles, which tend to be more cost-effective than some battery-powered EVs. Despite Toyota's performance, analysts have highlighted a set of challenges that lie ahead, particularly in the Chinese market. In China, the rapid ascent of domestic EV manufacturers and the swift transition to battery-powered vehicles have posed difficulties for companies like Nissan Motor and Honda Motor. According to Reuters, Chief Financial Officer Yoichi Miyazaki acknowledged that China is currently experiencing a "very severe price competition," particularly concerning battery EVs. Additionally, Toyota faces competitive challenges in Southeast Asian markets such as Thailand, where a surge in Chinese investments, driven by the increasing demand for EVs, has led to intense competition. Despite this, Toyota is determined to navigate these competitive landscapes as it aims to further its growth plans. The company recently announced an $8 billion boost in investment in a North Carolina plant focused on manufacturing batteries for hybrids, plug-in hybrids, and full-battery vehicles. Toyota's second-quarter results have led to an upward revision of its full-year profit forecast. The company now expects a full-year profit of 4.5 trillion yen, up from the previous projection of 3 trillion yen. The favourable impact of foreign exchange rates, attributed to a weaker yen, plays a significant role in this revised profit outlook. The company assumed an average rate of 141 yen per dollar for its calculations for the 2023-24 financial year, compared to the previous rate of 125 yen per dollar. Additionally, Toyota has announced a 100 billion yen share buyback program, and its shares gained 4.7 per cent following the release of these results, contributing to a 2.4 per cent increase in Japan's benchmark Nikkei index. (With inputs from Reuters) WATCH WION LIVE HERE

Toyota achieves impressive Q2 profit amid weak yen and growing hybrid demand 

Japan's factory output saw a weaker-than-expected increase in September, underscoring concerns about the nation's export-dependent economy. According to Reuters, government data revealed that industrial production in Japan rose by a mere 0.2 per cent in September compared to the previous month, as demand significantly decelerated. This figure fell short of the market's median forecast, which had predicted a 2.5 per cent gain, and followed a 0.7 per cent decline experienced in August.&nbsp;

A closer examination of the data highlights specific challenges within the manufacturing sector. Production machinery output recorded a decline of 3.4 per cent in September, reflecting a slowdown in the manufacturing of industrial robots and metals. Both domestic and international orders for these products showed a significant decrease, a representative from the Ministry of Economy, Trade and Industry (METI) told Reuters. The METI official attributed this phenomenon to waning investment appetite, partially influenced by increasing interest rates both domestically and globally.&nbsp;

In contrast, there were some bright spots within the manufacturing landscape. Output in semiconductor manufacturing equipment surged by 13.2 per cent month-on-month in September. However, the official cautioned that the recovery of chip and electronic device production is unlikely to occur in the near future. On the automotive front, the production of automobiles saw a substantial increase of 6.0 per cent in September, rebounding from disruptions caused by a typhoon and system failures. Japanese automakers, including Toyota Motor and Honda Motor, reported robust domestic output figures for September, with Toyota registering a 12.8 per cent increase and Honda climbing by 24.2 per cent year-on-year.&nbsp;

Despite these fluctuations, manufacturers surveyed by the industry ministry anticipate seasonally adjusted production to rise by 3.9 per cent in October but then decline by 2.8 per cent in November. This prediction aligns with the industry's assessment of industrial output, which is described as "seesawing." The outlook for the manufacturing sector remains uncertain, with sluggish demand expected both domestically and abroad. Reuters mentioned Kota Suzuki, an economist at Daiwa Securities, who emphasised that production is not situated in an environment conducive to a substantial recovery.&nbsp;

In other economic indicators, Japanese retail sales exhibited a 5.8 per cent year-on-year increase in September, marking the 19th consecutive month of gains. This performance closely mirrors the median market forecast, which predicted a 5.9 per cent increase. However, the data also showed that compared to the previous month, retail sales in September slightly dipped by 0.1 per cent, following a 0.2 per cent growth in August.&nbsp;

(Inputs from Reuters)&nbsp;

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Japan's factory output saw a weaker-than-expected increase in September, underscoring concerns about the nation's export-dependent economy. According to Reuters, government data revealed that industrial production in Japan rose by a mere 0.

Japan's factory output saw a weaker-than-expected increase in September, underscoring concerns about the nation's export-dependent economy. According to Reuters, government data revealed that industrial production in Japan rose by a mere 0.2 per cent in September compared to the previous month, as demand significantly decelerated. This figure fell short of the market's median forecast, which had predicted a 2.5 per cent gain, and followed a 0.7 per cent decline experienced in August. A closer examination of the data highlights specific challenges within the manufacturing sector. Production machinery output recorded a decline of 3.4 per cent in September, reflecting a slowdown in the manufacturing of industrial robots and metals. Both domestic and international orders for these products showed a significant decrease, a representative from the Ministry of Economy, Trade and Industry (METI) told Reuters. The METI official attributed this phenomenon to waning investment appetite, partially influenced by increasing interest rates both domestically and globally. In contrast, there were some bright spots within the manufacturing landscape. Output in semiconductor manufacturing equipment surged by 13.2 per cent month-on-month in September. However, the official cautioned that the recovery of chip and electronic device production is unlikely to occur in the near future. On the automotive front, the production of automobiles saw a substantial increase of 6.0 per cent in September, rebounding from disruptions caused by a typhoon and system failures. Japanese automakers, including Toyota Motor and Honda Motor, reported robust domestic output figures for September, with Toyota registering a 12.8 per cent increase and Honda climbing by 24.2 per cent year-on-year. Despite these fluctuations, manufacturers surveyed by the industry ministry anticipate seasonally adjusted production to rise by 3.9 per cent in October but then decline by 2.8 per cent in November. This prediction aligns with the industry's assessment of industrial output, which is described as "seesawing." The outlook for the manufacturing sector remains uncertain, with sluggish demand expected both domestically and abroad. Reuters mentioned Kota Suzuki, an economist at Daiwa Securities, who emphasised that production is not situated in an environment conducive to a substantial recovery. In other economic indicators, Japanese retail sales exhibited a 5.8 per cent year-on-year increase in September, marking the 19th consecutive month of gains. This performance closely mirrors the median market forecast, which predicted a 5.9 per cent increase. However, the data also showed that compared to the previous month, retail sales in September slightly dipped by 0.1 per cent, following a 0.2 per cent growth in August. (Inputs from Reuters) WATCH WION LIVE HERE

Japan's factory output growth slows, adding uncertainty to economic outlook 

Japan has been facing decades of deflation, a period of prolonged and generalized price decline. This has led to a number of economic problems, including stagnant wages and economic growth. However, there are signs that Japan's economy may be bouncing back.

One key indicator is the weighted median inflation rate, which accelerated to 2% in September. This is the highest level since comparable data became available in 2001. The increase is partly due to rising energy and food prices, but it also reflects a broader trend of rising prices across the economy.

Another sign of economic recovery is the strength of the Japanese labor market. The unemployment rate is at a record low, and wages are starting to rise. This is good news for Japanese consumers, who have been reluctant to spend money in recent years due to deflation.

Compared to other top major economies like the US, China, and India, Japan's economy is still relatively sluggish. However, there are signs that Japan may be catching up. For example, the Japanese economy grew at an annualized rate of 3.5% in the second quarter of 2023, the fastest pace in over a year.

The US economy is also growing strongly, but inflation is a major concern. The US Federal Reserve is raising interest rates in an effort to bring inflation under control. This could lead to a slowdown in the US economy in the coming months.

China's economy is facing a number of headwinds, including a slowdown in the property market. As a result, the Chinese government has announced a number of stimulus measures in an effort to boost growth.

India's economy is growing rapidly, but it is also facing some challenges, such as rising inflation and a widening trade deficit. The Indian government is taking steps to address these challenges, but it remains to be seen whether these measures will be successful.

Overall, the state of Japan's economy is mixed. There are signs of recovery, but the economy is still relatively sluggish compared to other top major economies. The BOJ is likely to revise up its inflation forecasts at its next meeting, and it may also debate raising a cap on long-term interest rates.

Japan has been facing decades of deflation, a period of prolonged and generalized price decline. This has led to a number of economic problems, including stagnant wages and economic growth.

Japan has been facing decades of deflation, a period of prolonged and generalized price decline. This has led to a number of economic problems, including stagnant wages and economic growth. However, there are signs that Japan's economy may be bouncing back. One key indicator is the weighted median inflation rate, which accelerated to 2% in September. This is the highest level since comparable data became available in 2001. The increase is partly due to rising energy and food prices, but it also reflects a broader trend of rising prices across the economy. Another sign of economic recovery is the strength of the Japanese labor market. The unemployment rate is at a record low, and wages are starting to rise. This is good news for Japanese consumers, who have been reluctant to spend money in recent years due to deflation. Compared to other top major economies like the US, China, and India, Japan's economy is still relatively sluggish. However, there are signs that Japan may be catching up. For example, the Japanese economy grew at an annualized rate of 3.5% in the second quarter of 2023, the fastest pace in over a year. The US economy is also growing strongly, but inflation is a major concern. The US Federal Reserve is raising interest rates in an effort to bring inflation under control. This could lead to a slowdown in the US economy in the coming months. China's economy is facing a number of headwinds, including a slowdown in the property market. As a result, the Chinese government has announced a number of stimulus measures in an effort to boost growth. India's economy is growing rapidly, but it is also facing some challenges, such as rising inflation and a widening trade deficit. The Indian government is taking steps to address these challenges, but it remains to be seen whether these measures will be successful. Overall, the state of Japan's economy is mixed. There are signs of recovery, but the economy is still relatively sluggish compared to other top major economies. The BOJ is likely to revise up its inflation forecasts at its next meeting, and it may also debate raising a cap on long-term interest rates.

State of Japan's economy decoded: Bouncing back from deflation?

Asia is in a warring sign for the world's third largest economy, which is facing weakening demand and struggling to tame cost pressures. Japan's manufacturing activity contracted at fastest space in 30 months in February.

Worrying sign for Japan's economy as factory activity sinks | World Business Watch

Japan is expected to announce an economic stimulus package to cushion the impact of inflation and Japanese media say that the package could be worth $200 billion.

Japan to approve new economic package; $200 billion package to ease inflation pain

Japan has announced a $260 billion stimulus package to help the economy bear the impact of a weak yen and inflation. However, the central bank is not ready to move away from the ultra-loose policy that has had a negative impact on the currency this year. The yen has lost 20 per cent of its value against the dollar.

"This... is a comprehensive economic package meant to combat inflation and revitalise the economy," Prime Minister Fumio Kishida told reporters.

After the cabinet approved an extra budget to partly fund the relief measures, Kishida said the government hopes the 39 trillion yen in fiscal spending will rise to 72 trillion yen when private sector investments are taken into account.&nbsp;

"We want to protect people's livelihoods, employment and businesses, while strengthening our economy for the future."

Also Read |&nbsp;<a href="http://13.235.153.162/world/japanese-yen-hits-150-mark-against-us-dollar-worst-since-august-1990-527077">Japanese yen hits 150-mark against US dollar - worst since August 1990</a>

Japan is witnessing a steep rise in prices, its fastest in eight years. However, the country has a three-percent inflation rate which is less that what is being seen in the United States and other countries.

Friday's package will include measures to encourage wage growth and support households with energy bills, which have spiked since Russia's invasion of Ukraine. It is also designed to help people and businesses affected by the plummeting yen, currently at 147 against the dollar.

The Covid-19 pandemic had a negative impact on Japan's economy and it had to inject hundreds of billions of dollars into its economy over the past two years to support recovery. It also has one of the world's highest debt-to-GDP ratios.&nbsp;

The government spent nearly $20 billion in September to try and curb the yen's slide, besides other expensive government interventions that have happened in recent days.&nbsp;

The gap between the monetary policies of the US and Japanese central banks has been widening. While the Bank of Japan has kept rates ultra-low to encourage sustainable growth, the Federal Reserve has been ramping them up.

(With inputs from agencies)

&nbsp;

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Japan has announced a $260 billion stimulus package to help the economy bear the impact of a weak yen and inflation. However, the central bank is not ready to move away from the ultra-loose policy that has had a negative impact on the currency this year.

Japan has announced a $260 billion stimulus package to help the economy bear the impact of a weak yen and inflation. However, the central bank is not ready to move away from the ultra-loose policy that has had a negative impact on the currency this year. The yen has lost 20 per cent of its value against the dollar. "This... is a comprehensive economic package meant to combat inflation and revitalise the economy," Prime Minister Fumio Kishida told reporters. After the cabinet approved an extra budget to partly fund the relief measures, Kishida said the government hopes the 39 trillion yen in fiscal spending will rise to 72 trillion yen when private sector investments are taken into account. "We want to protect people's livelihoods, employment and businesses, while strengthening our economy for the future." Also Read | Japanese yen hits 150-mark against US dollar - worst since August 1990 Japan is witnessing a steep rise in prices, its fastest in eight years. However, the country has a three-percent inflation rate which is less that what is being seen in the United States and other countries. Friday's package will include measures to encourage wage growth and support households with energy bills, which have spiked since Russia's invasion of Ukraine. It is also designed to help people and businesses affected by the plummeting yen, currently at 147 against the dollar. The Covid-19 pandemic had a negative impact on Japan's economy and it had to inject hundreds of billions of dollars into its economy over the past two years to support recovery. It also has one of the world's highest debt-to-GDP ratios. The government spent nearly $20 billion in September to try and curb the yen's slide, besides other expensive government interventions that have happened in recent days. The gap between the monetary policies of the US and Japanese central banks has been widening. While the Bank of Japan has kept rates ultra-low to encourage sustainable growth, the Federal Reserve has been ramping them up. (With inputs from agencies)

Japan PM announces $260bn stimulus package to combat rising inflation

Japan's core machinery orders extended gains in July, raising hopes business growth spending may offset near-term headwinds from a global economic slowdown and a weaker yen.

World Business Watch: Japan's machinery orders post surprise gains in July

Japan is urging its young people to drink more to boost the country's economy. Molly Gambhir tells you all about Japan's nationwide competition to boost alcohol consumption.

WION Fineprint: Japan wants young people to drink more alcohol

Japan's core machinery orders slipped for the first time in five months in January, a worrying sign for an economy already facing heightened pressure from the Ukraine war and high energy and raw material prices.

Japan's machinery orders falls for first time in 5 months

Japan's government announced a record $490 billion spending package on Friday to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances.

The massive spending would underscore the resolve of Prime Minister Fumio Kishida to focus on reflating the economy and redistributing wealth to households.

In a meeting of government and ruling party executives on Friday, Kishida announced his plan to spend around $490 billion in the stimulus package, and compile an extra budget by year-end to fund the measures.

The total package, which includes funds that do not lead to immediate spending, will likely reach $690 billion, according to a final version of the draft of the stimulus package obtained by Reuters.&nbsp;

The government will announce details of the package after it is signed off at a cabinet meeting later on Friday.

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said despite higher spending, the impact would be limited on markets as the Bank of Japan would keep borrowing costs low under its yield curve control policy.

Surging global crude oil prices, as well as a chip shortage and supply-chain constraints, undermined a trade-reliant economy seen to have shrunk in the third quarter as pandemic curbs and supply bottlenecks hurt consumption and output.

Measures to be included in the package are steps to ramp up domestic production of semiconductors as well as a $87.5 billion&nbsp;fund aimed at giving universities more resources to boost science and technological research, the draft showed.

The spending plan will also get a boost from cash payouts to citizens aged 18 or younger, which would cost about 2 trillion yen, and to small firms hit hard by the pandemic, to total some 3 trillion yen, the Nikkei reported. It includes the resumption of tourism promotion to stimulate demand after the pandemic.

Japan's government announced a record $490 billion spending package on Friday to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances.

Japan's government announced a record $490 billion spending package on Friday to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances. The massive spending would underscore the resolve of Prime Minister Fumio Kishida to focus on reflating the economy and redistributing wealth to households. In a meeting of government and ruling party executives on Friday, Kishida announced his plan to spend around $490 billion in the stimulus package, and compile an extra budget by year-end to fund the measures. The total package, which includes funds that do not lead to immediate spending, will likely reach $690 billion, according to a final version of the draft of the stimulus package obtained by Reuters. The government will announce details of the package after it is signed off at a cabinet meeting later on Friday. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said despite higher spending, the impact would be limited on markets as the Bank of Japan would keep borrowing costs low under its yield curve control policy. Surging global crude oil prices, as well as a chip shortage and supply-chain constraints, undermined a trade-reliant economy seen to have shrunk in the third quarter as pandemic curbs and supply bottlenecks hurt consumption and output. Measures to be included in the package are steps to ramp up domestic production of semiconductors as well as a $87.5 billion fund aimed at giving universities more resources to boost science and technological research, the draft showed. The spending plan will also get a boost from cash payouts to citizens aged 18 or younger, which would cost about 2 trillion yen, and to small firms hit hard by the pandemic, to total some 3 trillion yen, the Nikkei reported. It includes the resumption of tourism promotion to stimulate demand after the pandemic.

Japan announces $490 billion stimulus package to tackle Covid knockdown

As the global supply crisis and covid-19 hit business consumer spending the Japans's economy contracts much faster in the 3rd quarter, raising challenges for the new govt's growth plans.

World Business Watch: Japan's economy shrinks more than expected

A majority of Japanese firms say the world's third-largest economy will recover to pre-pandemic levels in fiscal 2022. Watch this report for more details.

World Business Watch : Japan economy to recover in FY2022, shows Reuters poll

Activity for the private sector as a whole contracted for a second straight month due to the weaker reading for manufacturing and continued shrinking in the services sector, clouding the outlook for second-quarter economic growth in the country.

Japan's June factory activity expands at slowest pace

Much of Japan has been under a state of emergency, centered around early closures of restaurants and bars, to curb the spread of the virus at places where crowds gather.

Japan's economy shrinks 5.1% during Jan-March

Japan's economy expanded at a slower-than-initially-reported pace in October-December as the impact of the COVID-19 pandemic weighed on the economic outlook.

World Business Watch: Japan downgrades fourth-quarter GDP as pandemic hurts domestic demands

External demand, or exports minus imports, added 1.0 percentage point to the fourth-quarter GDP growth rate.

Japan’s economy performed better than expected in last quarter

The government kept its assessment of industrial production unchanged, saying it was picking up.

Japan factory output growth stalls after rising for 5 months

Watch in this video of 'World Business Watch': Japan's GDP grows most on record after COVID recession.

World Business Watch: Japan's GDP grows most on record after COVID recession

Japan's real wages fall for the sixth straight month due to the coronavirus pandemic bites. Watch report.

Japan's real wages fall: COVID-19 prompts companies to cut costs

Japan's factory activity extended declines in September largely due to a sharper fall in output, as the world's third-largest economy struggles to stage a robust recovery from the coronavirus pandemic.

World's third-largest economy struggles to recover

Japan’s new premier Yoshihide Suga on Wednesday pledged to contain COVID-19 and retain his former boss’s “Abenomics” growth policies.

Japan consumer prices down at fastest pace in 4 years

Japan's economy sank deeper into its worst postwar contraction in the second quarter as the coronavirus jolted businesses more than initially thought, underscoring the daunting task the new prime minister faces in averting a steeper recession.

Japan's economy sinks deeper, businesses delay fresh investments

Japan's factory activity contracted at the slowest pace in six months in August, reducing some of the heat on policymakers pressured to take more radical steps to prevent the economy from sliding deeper into recession.

Japan's August factory activity shrinks at slowest pace in 6 months

Asia's second-largest economy has been hit by the biggest economic contraction in the second quarter. The economy has shrunk at its fastest rate on record as it battles the coronavirus pandemic.

COVID-19 pandemic crushes business, consumer spending in Japan

Japan's house hold spending falls, record fall registered in April. Travel, Dining out is completely shut down in Japan. Watch this video to get more details.

Japan's house hold spending falls, record fall registered in April

Japan is officially in recession. Is the pandemic entirely to blame? Perhaps. But, the Japanese economy has been stagnant for decades. Also read: President Xi in spotlight as China's annual party meet begins Japan, which is considered a technological and manufacturing giant could not make enough ventilators on time.

Japan is officially in recession. Is the pandemic entirely to blame? Perhaps. But, the Japanese economy has been stagnant for decades. Also read: President Xi in spotlight as China's annual party meet begins Japan, which is considered a technological and manufacturing giant could not make enough ventilators on time. The problem is not specific to Japan. Also read: Protesters stage mock funeral procession outside White House Every developed country faced the very same problem. But, this curious case of Japan's struggle in making enough ventilators shows us the faultlines in its economy. Ventilator makers desperately needed technicians. Japan's ageing population and declining labour force meant there were not enough young technicians. The older workers stayed home, given the greater risk of contracting the virus. Even with the availability of greater manpower Japan would still need to find the components to make the ventilators. Most of it comes from China, its largest trading partner. With the factories shut in China, Japan was left on its own. This is the story across industries in Japan, which explains its stagnancy. The pandemic has disrupted global supply chains on which Japan is heavily reliant to ship its products. Japan is the world's third-largest economy and its economic output -- measured by GDP fell 3.4 per cent in the January to March period. The slump came on an even steeper fall of 7.3 per cent in the October to December period. That's two-quarters of consecutive decline in GDP and that has pushed Japan into a recession. The last time the eastern superpower faced a recession was in 2015. Some economists have pulled out economic history to show how this fall is similar to the one after World War-II when Japan had found itself on the wrong side of the war. But its rapid re-building in the post-war period was commendable. Prime Minister Shinzo Abe has already announced a stimulus package worth one trillion dollars. That's 20 per cent of its five trillion dollars economy. The money is at hand, but not the means to put it to good use. Japan in recent times has been relying on tourism, which accounts for close to eight per cent of its GDP. Over 30 million people visited Japan last year. Prime Minister Shinzo Abe was counting on the Olympics to bring in a historic 40 million visitors with pockets full of money. But the pandemic has led to the postponement of the global sporting event. One out of five companies is running out of cash. Borrowing rates have slipped below zero and will remain so at least for another year. Transport, utilities, retailers, steel and carmakers are the most worried. Japanese firms have been criticised for hoarding cash all these years by the end of December, Japanese companies held a record 2.47 trillion dollars in cash. In just five months, they have burnt the cash in trying to stay afloat. Output and new orders have slipped at the fastest pace in a decade. In April, Japan's exports fell the most since the 2009 global financial crisis. There are fears that Japan's economy could slip by over 22 per cent in the April to June quarter. Some of the world's leading carmakers are Japanese and they are all expecting their profits to slip by over 80 per cent, including Toyota and Mitsubishi. Japan will be officially out of lockdown once restrictions are eased in Tokyo next week. Japan's Masayoshi Son of SoftBank who has funded the world's gig economy, including Uber, said: "The reason for failure lies not externally but within yourself." That sums up Japan's economic problem.

Japan's stagnant economy: Who's to blame?

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