Japan Economic View: Updated Jan. 31, 2025

Japan retains economic view in Jan., optimistic on business climate

 Article Source:  https://mainichi.jp/english/articles/20250123/p2g/00m/0bu/053000c 

Ideas:

Overall, the Japanese government doesn't want to sound too optimistic or sound too pessimistic and it doesn't want to upset the financial markets or cause harm to businesses. 

So it always uses the phrase recovering moderately but uses pausing as a way to say its improving but not completely.

If the Japanese government or any government said what it really thinks the financial markets could react in a not so good way or even businesses would not invest in the economy,

As an example, corporate bankruptcies, unfortunately, are increasing in Japan, and if the Japanese government said what it really thinks the Japanese economy and the mood of the country could be in a not so good situation.

So it uses, again, almost flat, which is a polite way to say they are there but don't want to say just how bad it is.

However, its quite possible, that the Japanese economy has reached its lowest level and just possible its beginning to come back slowly after being stagnant for a very long time.

Many governments tried to help businesses hit hard by the pandemic and its sad that there might be some or many that are having challenges repaying the loans that governments provided them.

Hopefully, the Japanese government tried to help those businesses that had challenges since the pandemic with whatever they needed to keep going.

But at the same time, in a market economy, unfortunately there are always going to be business and succeed and those that don't do so good.

The global economy is always picking up and always showing signs of pausing as the global economy is like a microcosm of an economy made up of many different sectors and not all sectors are going be growing at the same time as some sectors might be deceasing or pausing at the same time.

For example the US is the envy of the rest of the world at the present time, while the EU might still might be in a stagnant phase as Germany is not doing good at this time.

 While China seems to be moving in the right direction with  GDP growth of 5 percent for 2024.

Have a nice day!