TOKYO – The Organization of Economic Cooperation and Development (OECD) rate reform Japanese government debt has not appeared. Japanese government debt still increased.
“Japan’s budget deficit approaching 10 percent of gross domestic product (GDP). Japanese government debt continues to rise, exceeding 200 percent in 2011,” said OECD Secretary General Angel Gurria in Tokyo yesterday. He hoped the Japanese Government back to its primary purpose, namely to balance the deficit in the normal position in 2011. Currently the Japanese public debt is the highest among developed countries. “Any small increase in interest rates would make the budget,” he said.
The Japanese government issued an additional budget to stimulate the economy. On the other hand, tax revenues weaken. Concerns over plans Japanese government bonds have triggered bond yields. “The key to solving financial problems is to encourage economic growth, increasing GDP and end deflation,” said Gurria. He explained that Japan would face deflation due to the emergence of signs of increased consumption. “This is not the type of structural deflation because of the continuing decline in demand,” he added.
Gurria explained, Japan requires 4.8 percent growth for all economic engine can work normally. About Japanese interest rates near zero, Guria very difficult to say that monetary policy is issued in accordance with current conditions. Meanwhile, the Government of Japan announced that Japan’s economy experienced the fastest growth since two years ago with a record increase of 1.2 percent during the quarter III-2009. Third quarter results continued the positive trend of the Japanese economy after the previous period also grew by 0.7 percent quarterly.
In comparison, the third-quarter Japanese GDP in 2008 contracted by 4.8 per cent drop in exports. A number of economists who asked for his opinion on the Reuters poll estimate, Japan’s GDP could grow 0.3 percent in the quarter IV (October-December). While in the period January-March 2010 grew 0.1 percent to slow down. “No doubt the Japanese economy has recovered, the improvement in exports triggered,” said Monex Securities chief economist Naoki Murakami. Nevertheless, Naoki Murakami warned that despite the strong quarterly performance, there are still risks in the temporary next period.
Improved economic growth in the July-September period can not be separated from increased exports of 6.4 percent, increase spending 1.6 percent of the company model, and the strengthening of household spending 0.7 percent. Analysts said the strengthening of economic performance in the third quarter and in line with efforts to reduce inventory levels of the company. “Although GDP is very strong image, we need to discount the positive contribution that makes private inventories are not growing,” said Barclays Capital economist Kyohei Morita.
Tuesday, the OECD predicts GDP of South Korea (Korea) grew four percent in 2010. Based on data from South Korean Ministry of Finance, State ginseng is predicted to contract 1.5 percent in 2009 and grew four percent in 2010. “We expect a better outlook than the Korean government forecasts,” the OECD said.
