Recovery far from reality

The Issue: Economic recovery in Japan is far from hopeful tidings we’ve read about in recent months.

Our View: Local leadership must read economic trends, constantly, realistically.

Whatever positive tidings have emerged from the Land of the Rising in terms of real economic recovery is but fainted hope. Its frugal consumers are not about to splurge in any spending spree.

If the Japanese economy recovers, then families would first replenish savings expended at the peak of the crisis to get by. We’re talking family savings for retirement, education and health, three big family ticket items that would obviously prohibit any consumer spending spree any time soon.

As we have mentioned in a separate editorial, consumer spending on both sides of the Pacific divide has declined, meaning that even our apparel production has seen concurrent decline in purchases. It’s an indicator that calls for a convergence of combined private and public sector leadership to critically review what it all means, if this trend continues over the next several years.

The future of tourism remains bleak for as long as nearby Japanese consumers refuse to spend even with coupons once issued by the Government of Japan to encourage spending. Therefore, it stands to reason that the last Ace In Palm–cost of apparel production–warrants serious review to relax various fees now in effect until such time that consumer spending takes an upward spiral across the country and in Japan.

Has the Japanese economic crisis bottomed-out? A nationwide poll said that 67 of 100 major companies feel the economy has reached rock bottom and is slowly recovering–“exactly the same number of firms that said so in a previous survey”, according to the Yomiuri Shimbun’s online edition.

“Asked when the economy will start to fully recover, 36 companies said between April and June 2001, followed by 31 firms that said after late 2001. As for factors that made firms concerned about economic prospects, most cited ‘sluggish consumer spending, slowdown of overseas economies and falling stock prices”.

The NMI’s combined leadership must constantly monitor economic trends or indicators on both sides of the Pacific divide if only to get a clear glimpse of where trends are headed and their implications versus the fragile economy of these isles. Si Yuus Maase`!