Two-thirds of big Japanese companies expect the country’s economy to recover by the middle of next year, according to a survey by Kyodo News released yesterday.
Of 108 firms polled, 71 expected a recovery by the middle of next year. Twelve of them said the economy was already recovering, 15 expected the turn to come in the second half of this year and the 44 others in the first half of next year.
Kyodo attributed the optimistic outlook to improved business results sparked by cost-cutting, rebounds in production and inventory adjustments.
The survey followed a report by the Bank of Japan in the middle of last month that said the economy should start recovering from the second half of this year.
However, annual GDP was expected to shrink 3.4 percent in the financial year to March next year.
The bank also forecast GDP growth of 1.0 percent for the next financial year.
In the Kyodo survey, conducted late last month, 20 firms said the world’s second biggest economy was “recovering slowly” while 51 firms said it was “leveling off despite signs of recovery.”
A similar survey conducted between late November and mid-December last year showed 98 percent of respondents thought the economy was deteriorating.
However, the latest poll showed big businesses had persistent concerns.
Eighty-eight firms cited the state of the US and European economies while 64 firms noted sluggish personal consumption and 29 the deteriorating employment situation.
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