The Japanese central bank has kept the interest rates on hold. The rates now stay at 0.1%.
The reason behind this measure, is the attempt to boost the country's economic recovery. Keeping these rates low was essential in the country's fight against falling prices, which are undermining the economy's recovery.
As result, Japan enjoyed economic growth of 0.9% in the last three months of 2009.
This growth also results in a duel with China to become the world’s second largest economy.
The only challenge Japan now faces, is overcoming deflation. If the Japanese economy returns to a sustainable growth path with price stability, Japan could enjoy an even higher growth.
Japan has a long history of struggling with deflation. Japan struggled more than 10 years with falling prices during Japan’s “lost decade”.
Deflation is bad for an economy because consumers and businesses wait to purchase products in the expectation that prices will fall further in the future.
I think that Japan can’t overcome this challenge in a short period. Such problems can only be solved with a solid project based on a long period. The chance is big that Japan is going to lose its second place in the top of largest economies.
Bram Verstraete
http://news.bbc.co.uk/2/hi/business/10092811.stm
woensdag 5 mei 2010
Chinese are paying more for 'made in China' products
The Chinese consumers are paying most for products stamped “made in China”. As the largest manufacturing base in the world China is exporting countless different products to the world. The business owners and experts say that the main reason for this fact is the export tax rebates policies. This policies is hold accountable for the fact that Chinese consumers have to pay most for foreign produced products.
The economist Chen Zhiwu claims that not only the prices of foreign-made luxury goods are higher in China, but also the domestic-made products such as clothes, computer, etc. are also more expensive here than in for instance the US market.
The export tax rebates policies are need to help keep the prices competitive. Otherwise profits can be lost. The tax refund must be adjusted to keep the stress of the country’s taxation. Because China has handled 130 billion yuan of export tax rebates, which is a lot. The policy has to stay but appropriate adjustments are needed.
China's export value-added tax (VAT) rebate policy once promoted the country's exports and fuelled economic growth. However, the side effect of the policy is growing and appropriate adjustment is needed, the government has to look at it and take measures. The stress on the country’s taxation is enormous.
Thibaut Delsoir
Source: http://www.chinadaily.com.cn/business/2010-05/05/content_9813692.htm
The economist Chen Zhiwu claims that not only the prices of foreign-made luxury goods are higher in China, but also the domestic-made products such as clothes, computer, etc. are also more expensive here than in for instance the US market.
The export tax rebates policies are need to help keep the prices competitive. Otherwise profits can be lost. The tax refund must be adjusted to keep the stress of the country’s taxation. Because China has handled 130 billion yuan of export tax rebates, which is a lot. The policy has to stay but appropriate adjustments are needed.
China's export value-added tax (VAT) rebate policy once promoted the country's exports and fuelled economic growth. However, the side effect of the policy is growing and appropriate adjustment is needed, the government has to look at it and take measures. The stress on the country’s taxation is enormous.
Thibaut Delsoir
Source: http://www.chinadaily.com.cn/business/2010-05/05/content_9813692.htm
Tough rules set to drop home prices 30%
The Chinese government will soon introduce tough new rules for the house market. It is expected that those new rules may drop home prices by as much as 30 percent by the end of this year in Beijing.
One of the new rules will be a restriction of maximum two houses for every family, where the amount of houses possessed by a family was unlimited before. Also, buyers of a new home will have to give all relevant information about their family before signing a contract. If a buyer gives false information or crosses the maximum of two homes, the contract will be invalid.
They are implementing these rules as a part of the central government's plan to curb housing speculation and soaring prices, because lately the prices in Beijing were going through the roof.
Analists speculate that the number of homes sold may fall down by 50 percent compared with the same period last year. One of the reasons would be that a lot of families have to stop buying apartments, as it has been common for those families to purchase several apartments. Also property developers may delay or even suspend projects in a move to reduce their risks.
In my opinion there are two sides to the story. On the one hand this is one of China's many restrictions that inhabitants have to live by, you can argue wether this is fair or not. Personally I think the Chinese should have more freedom to decide for themselves what they want, without the interference of the government. From this point of view I am against the new rules.
Analists speculate that the number of homes sold may fall down by 50 percent compared with the same period last year. One of the reasons would be that a lot of families have to stop buying apartments, as it has been common for those families to purchase several apartments. Also property developers may delay or even suspend projects in a move to reduce their risks.
In my opinion there are two sides to the story. On the one hand this is one of China's many restrictions that inhabitants have to live by, you can argue wether this is fair or not. Personally I think the Chinese should have more freedom to decide for themselves what they want, without the interference of the government. From this point of view I am against the new rules.
But on the other hand this is a measure that is necessary for the building sector, the people that can't afford a home because of the soaring prices, the future attractiveness of the region, etc. . And this might be more important than the liberty of the inhabitants of China, at least for now.
China opens World Expo 2010 in Shanghai
The World Expo 2010 has opened its doors in the city of Shanghai, a city in China. With this expo China wants to show their global growing influence to the world. 250 countries and organizations are represented and are showing their culture.
The opening was celebrated with lots of fireworks, lasers and 2300 musicians from all over the world. Many world leaders attended to the opening ceremony such as the France’s President Sarkozy.
The 2010 World expo will be open for the next six months. China expect 70 million visitors in these months, mostly Chinese people. For the start of this event Shanghai has dramatically increased the security. State media says that an additional of 8000 extra police officers joined the 46000 officers to patrol the city.
Residents aren’t upset with the taken security measures, due to these measures they can’t simply get in and out anymore. Besides that all markets are closed and used as car parks.
In my opinion it’s a good but very expensive event for China, the estimated cost is 53 billion dollars. They will surely get a small payback from the visitors who pay 160 dollar for a standard day ticket. But the most important are the relationships that China will build with the other countries, those relationships are priceless. Nowadays China has some problems with different countries and this event is a good way to solve them, or to consolidate their relationship.
Niels Steyaert
Source: http://news.bbc.co.uk/2/hi/asia-pacific/8653426.stm
The opening was celebrated with lots of fireworks, lasers and 2300 musicians from all over the world. Many world leaders attended to the opening ceremony such as the France’s President Sarkozy.
The 2010 World expo will be open for the next six months. China expect 70 million visitors in these months, mostly Chinese people. For the start of this event Shanghai has dramatically increased the security. State media says that an additional of 8000 extra police officers joined the 46000 officers to patrol the city.
Residents aren’t upset with the taken security measures, due to these measures they can’t simply get in and out anymore. Besides that all markets are closed and used as car parks.
In my opinion it’s a good but very expensive event for China, the estimated cost is 53 billion dollars. They will surely get a small payback from the visitors who pay 160 dollar for a standard day ticket. But the most important are the relationships that China will build with the other countries, those relationships are priceless. Nowadays China has some problems with different countries and this event is a good way to solve them, or to consolidate their relationship.
Niels Steyaert
Source: http://news.bbc.co.uk/2/hi/asia-pacific/8653426.stm
Indonesia finance minister resigns for World Bank post
The minister of Indonesia's finance minister Sri Mulyani Indrawati has been appointed managing director of the World Bank.
We think Ms Indrawati wil leave her job she has been doing for the last five year with the approval of President Susilo Bambang Yudhoyono. Ms Indrawati is getting a lot of respect because she has been steering South East Asia's largest economy through the final crises. But in this five years she has been fighting against the corruption in this country. When you know this it is rather strange her name has been falling in an investigation about a criminal bank bailout in 2008, over which she denies to have made any wrongdoing.
She said it is a great honour for her and her country, that she is getting the opportunity to work at the World Bank. And that on the important mission of the bank in changing the world.
I think it is good that all kinds of people can work at the important mission of the World Bank, certainly because Indonesia knows what poverty is. She might have seen enough in her country. But I don't think it is realistic to think you can change the word. And I don't understand why they let somebody wok on a high position as this one when you are accused of corruption.
http://news.bbc.co.uk/2/hi/asia-pacific/8661476.stm
We think Ms Indrawati wil leave her job she has been doing for the last five year with the approval of President Susilo Bambang Yudhoyono. Ms Indrawati is getting a lot of respect because she has been steering South East Asia's largest economy through the final crises. But in this five years she has been fighting against the corruption in this country. When you know this it is rather strange her name has been falling in an investigation about a criminal bank bailout in 2008, over which she denies to have made any wrongdoing.
She said it is a great honour for her and her country, that she is getting the opportunity to work at the World Bank. And that on the important mission of the bank in changing the world.
I think it is good that all kinds of people can work at the important mission of the World Bank, certainly because Indonesia knows what poverty is. She might have seen enough in her country. But I don't think it is realistic to think you can change the word. And I don't understand why they let somebody wok on a high position as this one when you are accused of corruption.
http://news.bbc.co.uk/2/hi/asia-pacific/8661476.stm
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