Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 20 May 2015

Japanese economy turning?

GDP goes "big in Japan"

A quiet day or three domestically for news and views, so perhaps an agreeable time to look at what is transpiring elsewhere in the world.

Japan's economy reported 2.4 per cent growth today.

This was way ahead of expectations, as reported here by the ever-vigilant Scutt over at Business Insider.

Battling back 

Japan has become a kind of weird idiosyncratic template for how not to deal with a real estate and economic bubble - replete with an ageing and stagnant population - with its repeated failed attempts to ward off a deflationary spiral.

Today's result gives some heart that stimulatory measures are finally working. 

The Nikkei 225 index surged to its highest level since early 2000, fully a decade-and-a-half ago.

And what a stock market index chart it has been since the collapse of the bubble a quarter of a century past!



International trade

It may come as a surprise to hear that, despite its widely lamented woes, Japan still has the third largest economy in the world, after the United States and China.

What is more, Japan is also the second most gainful destination for Australia's monthly merchandise exports by FOB value, long since shunted into second place by China, of course.


So a fairly encouraging snippet of news, albeit one that I've shamelessly lifted almost verbatim from our friends at Business Insider.

More timely breaking news to be discovered here...