The Bankwatch

Tracking the consumer evolution of financial services

How much do we understand the meaning of less GDP now and forseeable future

The fall in GDP for Japan appears nothing short of catastrophic, yet on a visit there last week by Nobuyo, the effects of this change are not obvious to the everyday Japanese person.

One change that was noticeable in Tokyo is less foreigners (Gaizin).  The area around Roppongi and Azabajuban is normally where one can expect to see many western faces in the restaurants and bars.  No more.  Companies such as Lehman Brothers, Merrill Lynch, and AIG as well as numerous other western financial services companies had representation in Japan, however that is quickly shifting.

This still does not appear to impact the average Japanese, at least not yet.  In fact as the country ages it almost seems to fit with a reduced economy.

Japan’s economy down 15.2% | Economist

The data, released on Wednesday May 20th, showing a 4% contraction of GDP on a quarterly basis, and a 15.2% annualised slump, reflect a continuation of Japan’s worst economic performance since the mid-1950s. Not only were the first-quarter figures bad. The previous quarter’s horrendous fall was itself revised downward by more than two percentage points, to an annualised 14.4%.

Researched by Nobuyo Henderson

Written by Colin Henderson

May 21, 2009 at 00:00

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