Japan warns that economic recovery is on 'pause'

The Japanese Government said today that for the first time in the past two months, the country's economic recovery appears to be "on hold" amid weak exports and concern about the yen's strength. In its monthly economic survey, the Government indicates that economic activity "appears to have recently gone on hiatus" and that exports, composed mainly of electronic products and machinery, "have weakened lately." This is the first negative economic assessment made by the government since February 2009 and first used the term "hold" since July 2008, two months before the bankruptcy of Lehman Brothers, according to the local agency Kyodo. The negative review is due in part to the slowdown in the Chinese economy, Japan's largest trading partner, which has hurt other Asian nations and has affected the demand for Nippon, said an official spokesperson to present the study and the Japan economy recorvery. Thus, Japanese exports mainly consist of electronic products, machinery and motor, "have weakened lately," the spokesman added.
Japan economy recorvery
Last August, Japan's trade surplus fell for the first time in the past 15 months amid a slowdown in the pace of exports, which grew 15.8% YoY but fell more than 5% from the previous month and the Japan economy recorvery.. Moreover, "the latest data clearly show that industrial production (Japan) has worsened," the spokesman said, referring to falls sustained in the last three months and the prospects of reductions also in September and October. He also warned that the prolonged slowdown in exports and the fall in production could be reflected in the results as capital spending Nipponese companies, as well as lead to a reduction in working hours, resulting in lower wages and the Japan economy recorvery..  In the report, the Government is confident that the pause in the recovery is temporary and that the economy can continue to grow, supported by appropriate stimulation and the recovery of some foreign economies. But he added that risks remain and urged the Bank of Japan (BOJ) to "continue supporting the economy with an appropriate and flexible monetary policy."

Japan economy
The economic report was released amid concerns about a stronger yen, which is at its highest level in 15 years against the dollar despite the Japan government intervention in currency markets last month and the Japan economy recorvery.. The Japanese currency was trading today at around 81.38 against the dollar units, well below the average of 89.66 units were then determined by the major exporting companies Nipponese. Japan came in the second quarter of 2009 from its worst recession after World War II.