Aso concerned as Japan's first quarter GDP shrinks at record pace

It was pretty bad in 1955, but this takes the cake.

Wow! I didn't think it could get that bad. I guess Japan still hasn't learned that an over reliance on exports isn't a healthy thing for a mature economy.

many many here & everywhere else have been saying for ages that Jpn needs to build its economy more on the domestic side instead of only thinking about exports, & low & behold no one listens, maybe this shock will bring about needed changes, or maybe not

"Recent signs, however, point toward a brighter outlook for this quarter."

There is no "brighter outlook". As an economist, it has been clear to me and many others that the Japanese economy has had serious structural problems for years. Now, they are truly coming to light, as are the problems with the US banking and credit system.

There is no short term fix here. This economy requires a fundamental, structural shift. It requires a re-build, not a renovation.

Get ready for more.

the "lost decade" is looking more like 3 decades...and counting

Obama is bad for everybody.

How can anyone be suprised with ASO and the LDP in charge?

Japan needs leadership if anything is to happen. Too bad there isn't anyone out there who looks promising to lead.

Aso is "concerned" when he should be impeached.

But as for the outlook, Aso said positive effects of the government’s economic stimulus measures are starting to emerge, pointing to a recent recovery in the leading indicator for machinery orders.

This is written as if there is some kind of correlation between government action, and an increase in orders for machine parts. Unless of course it's the government ordering all the machine parts, which given the corruption in the construction industry, is rather likely.

What is "quarter GDP"? Or do we mean "first-quarter GDP"?

Concerned? Why is he? Isn't he the geezer who recently said 12 bucks is reasonable for a coffee in a hotel?

‘‘I expect the economy to turn up at an early stage,’’ if such measures are implemented steadily and quickly, Kawamura said.

I still have not received my 12,000 yen stimulus, despite sending it off about a month ago. You know where its going? The bank. You know where my Japanese friends put their stimulus money? The bank.

Steady and quick is all well and good, but let us add intelligently in there. How about sending stimulus in the form of coupons, and not cash, so that people are forced to spend it on consumer goods, and not put it away for fear of, say, a future hospital bill for the flu? I am more concerned about the GDP than Aso Taro, can I be the Prime Minister now?

Altria- Yes, I'd think so :-P

I'd add shio-kara to that list too.

I want Aso to do something, not to just feel "concerned". When we are going to get rid of these innept?

We have to take appropriate actions

Mr Aso, please make your way to the study, where you will find brandy and a loaded revolver.

The underlying situation in the US is not good, but the Japanese economy is relatively stable. We will see if the stimulus package is well thought out - the situation could have been worse.

Private consumption decreased??? What happened to the whopping 12 thousand yen Aso gave to everyone. Ungrateful bas-ards, that lot of 'em! :)

How about not sending billions of yen overseas first.

What happened to the whopping 12 thousand yen Aso gave to everyone.

Still waiting for it....

Japan appears very masterful at producing inept leaders.

Perhaps the Japanese people want it this way, or they would muster up whatever it takes to change things.

We have to take appropriate actions

This is the officially used expression for "we have no clue". Which can be seen as well from the Japanese stimulus program, which seems to be about the most helplessly conceived program worldwide. And well, my expectations towards the effectiveness of any of these programs are already small enough...

Gas has increased 20 yen over the past two months. And the powerless Japanese society says "Shoganai" and shell's out 3 times the actual cost. Higher Gas prices reflect in every part of society and the greed of oil and gas companies are hurting the country overall. When will the sheep of Japan start to learn that these guys are big devils and demand their fox politicians to take action.

Within the next 24 months, Japan will lose her status as the 2nd largest economy in the world.

-15.2 % and the worst part is that there is not much anyone can do. Exports are falling Land prices are falling. trade surplus is disappearing Things are not looking very bright

Aso is confused. He first gives us money to waste on yaki-niku, then uses Bush style scare tactics(N. Korea, Flu) to scare us into thinking we need him as our wise leader. But, now everybody is too scared to go outside and spend...

The economy is in tough shape and there isn't much that Aso or any other politician can do about it. It is kinda strange watching them try. But until exports pick up the economy is going to be in the pits. More price destruction, I guess.

Within the next 24 months, Japan will lose her status as the 2nd largest >economy in the world.

Very possible. But by then China will lose her status the 3rd as well. Everyone is in the same boat.

Very possible. But by then China will lose her status the 3rd as well. Everyone is in the same boat.

Indeed possible. But as per the most recent news, China's economy is one of the few in the world that's still growing somewhat tepidly, in light of this economic downturn. Goldman Sach's growth forecast for China is 8.3% for 2009, a bit optimistic, we'll see what the numbers look like at the end of the year.

http://ph.news.yahoo.com/rtrs/20090514/tbs-morganstanley-china-21231dd.html

Right now Chinese economy is in "forced growth" mode with domestic projects, building up of strategic raw material reserves. But if exports can't grow then sooner or later it;s going to hit the fan. The faster they grow the harder they fall. Of course in a country where you can run over the angry people with tanks maybe that doesn't mean very much.

Ossan,

I agree with your 'forced growth' comment. As for the other comment:

'Of course in a country where you can run over the angry people with tanks maybe that doesn't mean very much.'

Are you also referring to the United States's horrendous killing and torture in Iraq and Afghanistan?

http://www.rense.com/general37/eyewitnesscharges.htm

http://www.thewe.cc/contents/more/archive2004/august/army_medics_aided_abuses.htm

'The number of Iraqis killed through 2007 ranges from "a conservative cautious minimum" of more than 85,000 civilians[70][71] to a survey estimate of more than 1,000,000 citizens.'

http://en.wikipedia.org/wiki/Iraq_War