Saturday, 23 May 2009

Good news from Japan and China

The Bank of Japan reported on Friday that the recession is easing. AFP/CNA reports:

Japan's worst post-war recession appears to be easing, the central bank said Friday, upgrading its assessment of the world's number two economy for the first time in almost three years...

"Economic conditions have been deteriorating, but exports and production are beginning to level out," it said in a statement.

"Going forward, although domestic private demand is likely to continue to weaken, exports and production, after levelling out, are expected to start recovering and public investment to increase.

"Therefore, the pace of deterioration in economic conditions is likely to moderate gradually, leading to a levelling out of the economy," it said.

The BoJ also left interest rates unchanged.

The Bank of Japan (BoJ) also left its key interest rate unchanged at 0.1 per cent at a two-day meeting, as widely expected.

And it expanded the type of debt it will accept from banks in return for emergency funds to include bonds issued by the governments of the United States, Britain, Germany, and France.

There is also some optimism from China. From AFP/CNA:

China said industrial output is expected to rise eight per cent in the second quarter and exceed ten per cent in the second half of the year as stimulus measures kick in.

The Ministry of Industry and Information Technology forecast the second quarter would post a jump from the 15-year low of 5.1 per cent growth seen in the first three months of the year.

"The overall situation in both heavy and light industries is turning positive," the ministry said in a report on its website.

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