July - A sign of economic improvement

On 13^th of July, Hayashi Yoshiyama, Ministry of Economic and Financial Affair of Japan, presented the economic condition of Japan during Cabinet ministry general meeting. According to last month economic financial condition report, the sign of economic recovery has been spreading among individual consumer. However, based on the 3 months economic condition trends, he revised the statement stated previously.

Due to change in tax reduction policy that has been implemented recently, export volume in eco-related products and eco-car has been increasing. However, compared to 7 years ago - economic bubble period during March - May 2002. The employment condition in Japan is still in deteriorating and uncertainty condition. 

According to July economic report, in general, Japan still in the bad-shape economic condition. However, there are 4 factors that have been changing which are consumer consumption, export, import, public service investment.

Consumer consumption, as results of economic policy, sales in automobile and LCD television has been increasing. In addition, food industry also is increasing well. On the other hand, export section also has been improving. It's due to increasing demand in China semiconductor industry. Also, there is a stable production condition. On the other hand, there is a decreasing trend in facility investment and deteriorating situation in Job market.

Lastly, rather than having a viewpoint of an improvement in global economic condition, It should be an Economic improvement in Asia region.

Comment:

Due to collapsing biggest US investment bank such as Bear Stearns, Lehman Brothers, Washington mutual, Wachovia there are many investment products that losing its value around the world. It eventually affects the global economic condition. On the other hand, there are still many growth opportunities in Asia region. It also includes the economic and investment growth. There many foreign and Japanese companies doing some foreign direct investment to catch this valuable business opportunities.

NUGROHO Katarina Marsha Utama

Indonesia

Ritsumeikan Asia Pacific University, APM 3