Gloom and doom at the Bank of Japan

BOJ's Shirakawa says conditions to deteriorate

Central bank governor warns Tokyo gathering that economy is worsening

HONG KONG (MarketWatch) -- Bank of Japan Gov. Masaaki Shirakawa said Friday the Japanese economy is worsening and the downturn has yet to run its course, according to reported comments.

Shirakawa, speaking at the central banks' quarterly branch managers' meeting in Tokyo, warned employment and wage conditions would deteriorate further and that company earnings and the ability to raise funds remain under intense pressure.

"Under these circumstances, the possibility is high that the nation's economy will continue deteriorating for the time being," Dow Jones Newswires quoted Shirakawa as saying.
The tone of the comments reflected a deep sense of gloom, raising the likelihood the central bank would revise down its growth outlook when it releases its semiannual outlook report on the economy April 30.

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It's important that Japan, a vital exporter of goods for many western countries, sees an economic improvement in the coming months.

China one of the biggest and powerful nation of Asia, is expecting to see the slowest growth rate in 10 years due to the global recession and also expecting diminishing demand following to the export sector to collapse. As we all know that China is an export oriented nation, with this collapse of its main driver of economic growth it is definite to watch incredible slowdown in the near future.

I have read in many forex online market reviews that they forecasts to see a growth rate near 6% in the first quarter. Although this level has never being witnessed in a decade but I think China should be happy about it that at least this nation is experiencing growth rather than retrenchment.

Singapore is facing similar situation with the expectations of economist and general public that the economy would shrink within a range of 6- 9% this year, recording the largest contraction seen in last 44 years, as the demand world exports continue to fall. It is seen in the reports that the exports of this nation has fallen for 11 consecutive months, thus forcing the central bank to interfere in the matter and lowering the trading range for the Singapore dollar for the first time since 2003.

Lets hope Japan saves from this crisis.

I'm sure it will eventually, especially when international demand for their products increases.

Hopefully :) I dont think that it could happen too soon seeing the server economic crisis all over. Lest wait :waiting: