猿の尻笑い

As one can see from the graph above, this is no doubt news that a lot of Japanese are no doubt going to be repeating for some time to come. As of 5:00 pm today, the Nikkei and Yomiuri had already posted stories to that effect on their Japanese language websites, while the Asahi was slightly less optimistic and didn’t even mention 4.4% in its headline.

The IMF report cites increased exports to Asia and higher business fixed investment as main drivers behind a rise in real GDP in the first quarter, although this growth slowed somewhat during the second quarter. The remainder of 2004 should be positive barring a decline in exports or a continued increase in the price of oil.

Nevertheless, problems remain, not the least of which is Japan’s national debt which had broken the 160% of GDP mark at the end of last year. In order to begin addressing the debt, Japan may have to consider some combination of further increases in expenditure in the short term, while longer term possibilities include increasing the retirement age, seeking higher tax revenues, or boosting potential growth through further structural reform.

In closing, I would like to announce more good news for Japan (or at least for unprepared foreigners who travel there without enough cash.) Shinsei Bank, of which I have been a fan for quite some time now, has just introduced ATMs that allow customers to use foreign bank and credit cards to withdraw cash or check their balances.

Since my first trip to Japan in 1997, I've had a series of mixed feelings about the Japanese banking system and its business practices, although I must cite substantial improvements (i.e. ATMs that stay open after the bank closes, and finally this year ones that operate 24 hours a day!). However, I'm still a little torn on this one because although I empathize with the American custom of paying for everything with plastic, and as a result panicking when they find themselves in a cash-based society, I once had another foreigner berate me for not warning him that banks in rural northern Japan would not accept foreign bank cards (the same gentleman later became upset with my not adequately informing him that he would have to remove his shoes inside many Japanese buildings). On the other hand, it's difficult to sympathize with a country that launchs a massive "visit us" PR campaign involving the Prime Minister, yet still allows this.

So, to all you foreigners out there thinking of visiting Japan, remember: always take lots of cash, and a Japanese escort.

# posted by Saru : 8:10 PM