Data Point to Soft Japanese Economy; Signs of Slowing Growth Coupled With Strong Yen Highlight Sluggishness

The report highlights a sluggishness in the world's second-largest economy that won't be helped by a renewed decline in the dollar, which has slid to a three-month low against the yen, worrying Japanese government officials. "As it says in the [Group of Seven] statement, it is a probl...

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Bibliographic Details
Published inThe Wall Street journal Asia
Main Author Takashi Nakamichi and Miyako Takebe
Format Newspaper Article
LanguageEnglish
Published Victoria, Hong Kong Dow Jones & Company Inc 25.10.2004
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Summary:The report highlights a sluggishness in the world's second-largest economy that won't be helped by a renewed decline in the dollar, which has slid to a three-month low against the yen, worrying Japanese government officials. "As it says in the [Group of Seven] statement, it is a problem when foreign-exchange rates don't reflect fundamentals," said Finance Minister Sadakazu Tanigaki, referring to the G-7 communique in early October. "If the market doesn't reflect fundamentals and moves in a speculative fashion, we will take the necessary action." "The economy is obviously moderating from very strong growth" in the last quarter of 2003 and the first quarter of 2004, he said. "We are forecasting this correction phase will continue to the end of this fiscal year," which runs through March 2005.
ISSN:0377-9920