The Japanese economy emerged from recession in the last quarter of 2012 according to economist predictions giving credence to Prime Minister Shinzo Abe’s campaign to restore growth to the Asian nation.
Several Banks, including JPMorgan altered their forecasts, raising them to take into account a gauge this month that showed a rise in consumption. If the nation does show that it avoided recession it would have escaped its third recession in five years.
“Japan’s economy will likely see a solid recovery in the coming months,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co., “Still, consumption may cool after the sales tax rise, and the new BOJ governor will probably have to show a stronger tone on easing.”
Tomorrow sees the release of Japan’s latest Gross domestic product data, which is expected to show a year on year increase of 0.4% in the three months to December. Consumer spending is expected to show a rise of 0.5% whilst private spending also saw an increase.
Painting an improving picture for the long time struggling economy, sales at Uniqlo, one of Japans largest clothes retailers posted a rise of 13.7% in November and 4.5% in December. The cold winter being endured by Japan is being hailed as one of the reasons for the improving picture as cold citizens rush out to buy warmer clothes and cold weather supplies.
The Yen could see some strengthening over the next few days after a G7 official said that Japan will be discussed at the G20 summit due to b held in Russia. He said there were concerns that the Yen’s moves had been ‘excessive’.
Current JPY exchange rates
These exchange rates were correct as of 09:45 am
The Japanese Yen to Pound Sterling exchange rate is currently trading at 0.0068
The Japanese Yen to US Dollar exchange rate is currently trading at 0.0107
The Japanese Yen to Euro exchange rate is currently trading at 0.0079
The Japanese Yen to Australian Dollar exchange rate is currently trading at 0.0104