Japan’s Recession May Be Shallow, Cabinet Office Economist Says
By Daniel at 6 November, 2008, 8:42 am
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By Toru Fujioka and Tatsuo Ito
Nov. 6 (Bloomberg) — Japan’s recession will be shallower than the U.S. and Europe because damage from the global credit crisis has been limited, the Cabinet Office’s top economist said.
The depth of Japan’s recession won’t be as severe as those of the U.S. and Europe because of the relatively healthy financial system,” Jun Saito, an adviser to Economic and Fiscal Policy Minister Kaoru Yosano, said in an interview yesterday in Tokyo. “The pressure for adjustments in capacity, labor and inventory is smaller than that of previous recessions.”
Japanese banks are still lending to each other as well as to companies, setting them apart from counterparts in the U.S. and Europe. The world’s second-largest economy has become more resilient to global shocks after three recessions since 1990 forced companies and banks to fire workers and clean up debt.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aIXTlpJHsEok
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