— Japan’s Yosano: No Need To Take Steps On Recent Pause In Econ
— Japan Minister Yosano: Japan Weakness To Be Seen For Now
— Japan’s Yosano: Economy To Recover But Watch For Risks
— Japan’s Yosano: China’s Economic Growth Good For Region
— Japan’s Yosano: To Seek Better Economic Ties With China

TOKYO (MNI) – Japan’s Economic and Fiscal Policy Minister Kaoru
Yosano said on Monday that the government and the Bank of Japan share a
view that the economy is moving upward, overcoming what appears to be a
temporary dip in growth in the final quarter of last year.

“The Q4 GDP confirmed that the economy was pausing, but it has
shown signs of picking up,” he told reporters after the Cabinet Office
released the latest GDP data that showed the first contraction in five
quarters.

“The Japanese economy should recover thanks to an expected increase
in exports and positive effects of some policy measures, although its
weakness will be remain for the time being.”

“We must watch for developments in overseas economies and foreign
exchange markets,” he added.

Asked what the government should do to move the economy out of the
recent slump, Yosano replied, “No policy measures are not needed now, as
the GDP drop was due mainly to some special factors.’

Japan’s economy contracted by 0.3% on quarter in October-December
2010 after a revised 0.8% rise in July-September. On an annualized
basis, it fell 1.1% in Q4, compared with a revised 3.3% rise in Q3.

Private consumption, which makes up about 55% of GDP, fell 0.7% q/q
in Q4 after rising 0.9% in Q3, making a negative 0.4% percentage point
contribution to GDP.

It is believed to be a temporary decline in payback for rush
purchases of automobiles and cigarettes in the July-September before the
government ended its subsidy program for buying and owning
energy-efficient vehicles in September and raised the tobacco tax in
October.

Net exports — exports minus imports — made a negative 0.1
percentage point contribution to Q4 GDP while domestic demand pushed
down GDP by 0.2 percentage point from the previous quarter.

Yosano noted that automobile sales and output are showing a sign of
a rebound from the slump and that the U.S. economy is being resilient
despite its high unemployment.

He said Japan is not vying with China for the position of the
world’s second-largest economy, and that it welcomes China’s strong
growth, which helps the development of the Asian region.

“We want to seek better economic ties with China,” he said.

Earlier today, the Cabinet Office said China’s total economic
output officially surpassed Japan’s last year.

In nominal dollar terms, China’s GDP came to $5.879 trillion
(CNY39.798 trillion) in 2010 while Japan’s GDP totaled $5.474 trillion
(Y479.22 trillion).

In 2009, Japan’s nominal GDP stood at $5.042 trillion (Y470.94
trillion), just ahead of China’s $4.991 trillion (CNY34.090 trillion).

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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