Print

Mail

wiki links

Japan's economy picking up speed, says finance chief

Heizo Takenaka, Japan's minister in charge of economic and financial services, said the world's second biggest economy will accelerate after expanding between 0.5 percent and 1 percent this year and in 2004.

``This is the time of adjustment,'' Takenaka told a World Economic Forum meeting in Singapore. ``After that, the pace of growth may rise to 2 percent or more.''

Japan's exports, which accounted for a fifth of Japan's 1 percent economic growth in the second quarter, have risen five straight months to August. The unemployment rate fell to 5.1 percent in August from 5.3 percent in July.

"Inventory levels are quite low, so we have a very positive power to recover," Takenaka said at a press briefing.

"Cyclically, we are in a good position and this is now spilling over to the household sector," Takenaka said

Prime Minister Junichiro Koi-zumi has called an election for Nov. 9, betting Japan's fastest economic growth in 2 1/2 years will win him enough support from the country's 100 million voters for a second term in office.

Reappointed to his positions in charge of banking and economic policy by Koizumi last month, Takenaka listed some factors that posed risks to Japan's economic expansion, among them rapidly rising stocks and the currency.

The yen had the biggest gain against the dollar among 16 major currencies last week, advancing 2.09 percent at 5pm New York time on Friday.

It was last traded at ¥108.66 to the dollar.
This story has been viewed 1702 times.