Turbo Growth in Japan

The world's third-largest economy is picking up speed for real , thanks to massive fiscal and monetary easing.

Japan, the world's third largest economy after the U.S. and China is well on its way into the economic recovery, such as Europe and U.S. have been yearning for for years.

Entire 0.9 percent thus grew the Japanese economy in the first quarter compared with the previous quarter. This corresponds to about 3.5 percent, converted to annual growth, which is significantly more than in Europe, where there was a decline of 0.2 percent in the first quarter and also significantly more than in the U.S. where an annual rate of 2.5 percent is expected for the first quarter.

This is especially based on the fact that Japanese consumers are starting to buy in bulk, the growth accelerates. The economic policy the Japanese Prime Minister Shinzo Abe is launching, seems to have the desired effect. Shinzo Abe has said that he will "shoot three arrows at the economy ', which consists of strong money - and fiscal stimuli to be combined with comprehensive structural reforms that make the somewhat old-fashioned and rigid Japanese economy more flexible.

The substantial easing of monetary policy by the Bank of Japan with Director Haruhiko Kuroda in the lead is already in the process of being rolled out in practice, and has since last fall pushed the yen as much as 30 percent down in price.

It has helped to get the Japanese equities to shoot in the air with express speed, which helps to stimulate private consumption, because many Japanese people so feel richer. Entire 45 percent has special Nikkei 225 stock index soared this year alone, which is more than twice as much as the U.S. Standard & Poor's 500 Index has risen by.

House prices rise again
New figures also show that prices in Japan fell by as much as 1.2 percent after the first quarter of this year compared with last year. This is the deflation that has been going on for more than ten years, where prices have tumbled, the Bank of Japan is trying to fight with its very aggressive monetary policy, which increases the money supply in Japan dramatically.

The housing market has also started to get better. Apartments in central Tokyo soared by 48 percent in March compared to the same month a year earlier. Housing prices in Japan has otherwise not risen in a single year since 1991, figures from Japan Real Estate Institute show.

The Bank of Japan has said that they will double their purchases of government bonds this year to push up inflation at two percent. At the same time, the Japanese government announced a fiscal stimulus package of 10,300 billion yen, representing close to two percent of the Japanese GDP.

A spokesman for China's Commerce said yesterday that they are concerned about the large drop, as seen in the Japanese yen lately. This makes it more difficult for China to sell goods in Japan and weakens earnings in many Chinese export companies, it was highlighted.