Japan PM says economy sound, but worries ahead
Japanese Prime Minister Taro Aso said on Tuesday that Asia's largest economy was sound but warned that the global financial crisis threatened to sap demand for Japanese exports.
By Agencies |
TOKYO: Japanese Prime Minister Taro Aso said on Tuesday that Asia's largest economy was sound but warned that the global financial crisis threatened to sap demand for Japanese exports.
"The financial system in Japan itself is sound, but (the global crisis) will surely affect the real Japanese economy," Aso told a parliamentary committee. "We must carefully monitor the situation and take appropriate action when needed," he said.
Japan's stock market fell sharply for a second straight day while the yen soared against the dollar and the euro. A strong yen makes Japanese exports - already wobbly due to the global slowdown - less competitive overseas. Aso said that indicators of the US economy were "falling across the board."
"This will surely affect Japanese exports. It will also affect Chinese exports. And when that happens, it will affect Japanese exports to China," Aso said. The United States and China are the two largest commercial partners for Japan, whose recovery from recession in the 1990s was driven by exports.
Japan's economy is again teetering on recession due to the global slowdown and tepid consumer spending.
"The financial system in Japan itself is sound, but (the global crisis) will surely affect the real Japanese economy," Aso told a parliamentary committee. "We must carefully monitor the situation and take appropriate action when needed," he said.
Japan's stock market fell sharply for a second straight day while the yen soared against the dollar and the euro. A strong yen makes Japanese exports - already wobbly due to the global slowdown - less competitive overseas. Aso said that indicators of the US economy were "falling across the board."
"This will surely affect Japanese exports. It will also affect Chinese exports. And when that happens, it will affect Japanese exports to China," Aso said. The United States and China are the two largest commercial partners for Japan, whose recovery from recession in the 1990s was driven by exports.
Japan's economy is again teetering on recession due to the global slowdown and tepid consumer spending.
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