Japan will recover after recession at the end of 2011
The March events that stroke Japan had a bad influence on the economy and the people's capacity to a quick recovery. The country went into recession and after the last estimations, Japan will pass over this taught moment at the end of this year.
The consequences of the 9 magnitude earthquake, followed by the tsunami were greater than anyone expected. The demand and the offer changed drastically. The people spent much less on the food and on the other hand the supplies were not enough.
In an official statement of the Bank of Japan (BOJ), the experts said that the speed of the recovery is much slower that anyone expected. The manufactures are struggling to catch up all the lost time, but the supply chain is hard to be re-established.
Among this situation, the fear of another natural catastrophe is still in the people's life. The imports raised and the factory profit is very low. The first measure of the BOJ is to stabilize the monetary policy.
According to the Government's data, in January-March, the domestic consumption has felt with 0,9 percent, while the analysts expectations were for 0,5 percent. Based on that new facts, the annual decline will be 3,7 and not 2 percent as it was expected.
More, in the April-July trimester, the recession is expected to be deeper, this is the period of recovery. But in the second half of the year, the reconstruction of the country's economy will be much faster because the supplies are slowly restored and the domestic consumption will grow.
The worst scenario of the analyst includes another power shortage. The Economic Minister, Kaoru Yosano, said he has faith into the strength of the economy to recover.
He added that the economy of the country should grow in the March 2011 until March 2012 year with near one percent. More, he said that the Central Bank of Japan made all the possible acts for sustaining the economy in this time and he has nothing to ask them more.
The good thing, in Yosano's opinion, is that, in comparison with the economical crisis that stroke the entire world, Japan is facing with supply concerns and these issues will be solved this year. More, he said the Japanese people should be optimistic because the country has still great demands of goods and services witch is a strong sign of recovery. The investors are still skeptical of the third-largest economy in the world to have such a strong recovery.
