Economic Situation Within Oita Prefecture

(Oita Godo Newspaper, July 30th 2009, morning paper)

On July 29th, Oita Finance Office gave a presentation of the economic situation within the prefecture regarding the recovery after the interval of 4 years. The main reasons are the improvement in production activity in enterprises and the movement in the reduced production, as well as the decrease in private consumption was reduced. Nevertheless, the employment condition continues to worsen, and this is a cause of worry for many.

From April to June, it was analyzed that "although severe economic condition is continuing, it was visible there is one part of business that is getting better". There has been recovery from the "especially worsening condition" before the fouth quarter of the year. It was said that there is a need to observe the trend of economy and the results of economic policies.

Private Consumption: Although the sales volume of large-sized retailers and the sales of automobiles and new cars dropped in the first half of the year, the decrease in sales was reduced. Because of the discounts in express way charge, there was an increase in the number of people to enter leisure and tourist spots, compared to the first half of the year. The number of people staying over has dropped.

House Construction: The number of rents of rental houses and mansions has dropped.

Manufacturing Activity: From the adjustment of stored merchandise and the recovery of overseas demand, the information and communication devices (such as digital cameras) and chemistry (such as ethylene) has been improving. The production of electronic components and devices (related to semi-conductors) has been curtailed. Iron and steel production is sluggish.

Investment in Plant and Equipment: It is predicted that there will be increase in the later part of the year. Despite the decrease of that in Non-Manufacturing Industry, there will be an increase of that in Manufacturing Industry.

Enterprise Earnings: There have been drops in revenue for Manufacturing industry and Non-Manufacturing industry in the first half of the year. However, an increase in revenue is expected for the next part of the year.

The Impression of Economic Condition of Enterprises: There has been a decrease in the ratio of enterprises who experience drop in revenue.

Employment Situation: The availability in the employee recruitment is continued to drop. Compared to the first half of the year, the number of recruitment of fresh graduates also decreased. The number of job-hunting application for fresh graduates increased.

Public Enterprise: At the end of June, the total amount of money undertaken decreased compared to the first half of the year. The national portion and the prefectural portion increased.

Bankruptcy: The number of cases of emergency security system and the total sum of liabilities increased compared to the first half of the year.

Comment: The period of financial crisis has been a rough period for most countries, including Japan. It is uplifting to know that the economic condition is gradually improving. I hope that the growth will be sustainable in all aspects of economy. I also hope that the employment situation will improve in the near future.

NUGROHO Katarina Marsha Utama

Indonesia

Ritsumeikan Asia Pacific University, APM