An escalation in Japan’s nuclear crisis has failed to dissuade analysts from forecasting an economic rebound starting next quarter, an outlook that hinges on a recovery in business and household confidence.
Japanese manufacturers forecast the biggest jump in industrial production in over two years this month as domestic demand strengthens, adding to signs that Prime Minister Shinzo Abe can drive a sustained recovery.
Analysts from the 24 primary dealers in the Japanese government bond market comment on Bank of Japan Governor Masaaki Shirakawa ’s performance, in addition to Japan’s struggle with deflation and the power and limitations of monetary policy.
Japanese Prime Minister Shinzo Abe’s government predicts that tax revenue will exceed cash raised from bond sales for the first time in four years as the nation’s economy emerges from last year’s recession.
Japanese and South Korean industrial output was less than estimates in March and Taiwan’s first-quarter growth was half the forecast pace as weakness in global demand limits recoveries in Asian economies.