Economic

Mood of crisis in Japan’s economy

The bad mood in the Japanese economy has depressed the stock market on Friday in the basement. The Japanese Nikkei Index lost 3.5 percent. Since the days of the stock market in Tokyo is a Plus.

On Friday it was the much watched Tankan report, which provided for the re-break-in. After that, the mood in the Japanese industry is one of the worst for almost three years. The mood barometer is published every three months by the Japanese Central Bank. For the next quarter of the experts expect no improvement.

Problem Yen

The Tankan report is a mixture of economic analysis and tuning report. The Central Bank surveyed more than 10,000 companies. A big Problem for the economy, in Japan: the strong Yen.

The Export-dependent companies in the country get to feel special. In comparison to the US Dollar, the Japanese currency has since the beginning of the year to around seven percent. As a result, the abroad revenue decline, but the domestic price of imported goods will be more expensive.

Problems even small increases in wages of Japanese Workers. The hold back to the consumer, therefore suffering from the domestic demand-dependent companies. The domestic consumption 60% of Japanese economic output.

Pressure on Abe

Cautious, many large companies are when it comes to new investments, the report shows. Thus, the efforts of the Central Bank to move companies more risk-taking their spending to run, apparently largely into the Void.

Japan’s Prime Minister Shinzo Abe

The survey is likely to increase the pressure on Prime Minister Shinzo Abe, and the weakening of the economy through another Economic stimulus stronger grip under the arms. Also, the data could lead the Bank of Japan to loosen the monetary reins by the end of April.

ar/bea (rtr, dpa)