Most bosses see 'moderate recovery' for Japan economy
MOST leaders of 30 major companies - 70 per cent - think that Japan's economy is recovering moderately, according to the results of a Yomiuri Shimbun survey.
Regarding the economic prospects for the next six months, 27 respondents, or 90 per cent, said that the market will remain bullish.
Conducted last month, the survey also found that many respondents are wary of possible problems in the economies of emerging countries as well as the excessive depreciation of the yen. Many hoped that the government will implement its growth strategy as quickly as possible.
The number of respondents who believe that the economy is "moderately recovering" was 21, exceeding the eight who said it "remains at a standstill". Only one company leader said that the economy is "moderately declining".
The majority of the respondents said they believe the economic recovery will continue for a while, according to the survey.
Regarding prospects for the nation's real economic growth rate for this year, 13 leaders each said "1 per cent to less than 1.5 per cent" or "1.5 per cent to less than 2 per cent".
Although the economic growth rate was sluggish in the July to September period last year, the business leaders expect the economy will recover.
Ten respondents chose "improvements in employment and an expected increase in wages" and "recovery of the United States economy" as factors behind the economic recovery. These were the most popular answers, with multiple answers allowed.
Among those who thought that the economy was stagnant or declining, seven respondents chose "a lull in individual consumption", and six respondents chose "an increase in the price of imported raw materials and other products due to the weak yen" as reasons why. Multiple answers were also allowed for this question.
Asked about the government's decision to delay a planned increase in the consumption tax rate to 10 per cent until April 2017, many respondents agreed with the decision, which was made with economic growth in mind.
Twelve respondents said that the decision was "appropriate", which surpassed the two who said that it was "inappropriate" and the six who chose "it's hard to say".
THE YOMIURI SHIMBUN/ASIA NEWS NETWORK