The Samurai economy is emerging out of recession.

It may not be time yet to celebrate. But the air in Japan is pregnant with subdued optimism and expectation of a turnaround in the economic fortunes of the island nation.

After France and Germany, Japan appears to be breaking out of the recessionary cycle. That was the official announcement of the Japanese Government, that had promoted a USD 260.00 billion stimulus package to revive the economy, and has recorded an upward trend in the major economic indicators.

However, the most important and explosive problem facing Japan, namely, unemployment, is still far from being resolved. Part of the problem is said to be the surplus staff maintained in many of Japan’s manufacturing facilities.

Some of the major reasons attributed to Japan’s economic recovery, though nascent at this point of time, is in the export sector, particularly to China, especially in the electronics and auto sectors. Public spending by Government is also said to have had a positive effect. The stimulus package has also persuaded the Japanese public to loosen their purse strings, and increase consumer spending.

The fact is, there is a fall in the negatives that had battered the Samurai economy for more than a decade and a half. And that is being latched on to by the Government to project a positive image in economic growth.

Be that as it may, the real test of Japan’s recovery would be in sustaining the momentum in economic growth, until such time that not only it recovers the lost ground, but also registers fresh progress. The Samurai have to fight hard in the coming months before they can take it easy.

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