Forex Flash: Japan not poised for long recession – RBS

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FXstreet.com (Barcelona) - "Given the recent shakeup in Japan, if there is a recession we do not expect it to be long and deep, in contrast to past recessions. Considering that the US and China have shown signs of recovery recently, we believe the Japanese economy would return to positive growth in 2013." writes Junko Nishioka, Chief Economist at RBS.

However, the moot point is whether the economy regains enough growth momentum to enable implementation of the consumption tax hike. According to Nishioka, "Recovery in overseas demand could be a positive development considering the high dependency of the Japanese economy, but the problem is deteriorating export competitiveness. In other words, improvement in domestic demand is required to offset its impact."



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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