AFTER ALMOST FIFTEEN years, Japan is finally showing sustained signs of shaking off its economic malaise. GDP growth figures have risen for four consecutive quarters, hitting a 13-year high of 7% in the first quarter this year. Standard & Poor's raised seven ratings on Japanese corporations and financial institutions between January and March this year, continuing the trend from 2003, the first year in which upgrades exceeded downgrades since 1990.
A recent survey conducted by the Nikkei newspaper using the results of some 1,780 companies, indicated that capital expenditure in the manufacturing sector was expected to rise by 10% this fiscal year, compared to a 6% rise in FY2003. For all other industries, including electric and utility sectors, capital expenditure is expected to rise by 5.5%, up from 2.2% last year.
The signs of economic improvement are all there but levels of issuance in the international debt...
