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95% of Japanese firms say economy recovering
Publication Date : 08-08-2013
About 95 per cent of major Japanese companies believe the nation’s economy is on a recovery track, according to a survey jointly conducted by The Yomiuri Shimbun and NTV.
In the survey carried out immediately after last month’s House of Councillors election, six of the 116 companies said the economy is clearly recovering, while 104 of them said it is recovering moderately. Together they account for 94.8 per cent of the total.
The survey results appear to signal a significant improvement in domestic business confidence, compared with the previous survey in September and October of 2012 amid concerns over the rising yen and an economic downturn in the United States and Europe. Only 9.2 per cent of responding companies saw an economic recovery in that poll.
In the latest survey, 69 companies, the largest group, attributed the economic pickup to a recovery in exports backed by the correction of the stronger yen. Multiple answers were allowed for this question.
Regarding the end to a divided Diet after the ruling coalition of the Liberal Democratic Party and New Komeito comfortably won in the July 21 upper house election, 93 of the firms, or 80.2 per cent, said it would benefit the economy, while none said it would have a negative effect.
The findings of the survey, carried out between July 22 and August 2, indicate that many companies have high hopes that the administration of Prime Minister Shinzo Abe will accelerate efforts to implement its economic measures.
Asked what measures should be given priority, 85 companies, the largest group, said business tax incentives, such as reducing the corporate tax’s effective tax rate and tax cuts on capital spending. Regulatory and institutional reforms, chosen by 77 companies, came second, while 52 firms picked the promotion of negotiations on the Trans-Pacific Partnership multilateral trade agreement in the multiple answer question.
These economic policies have been regarded as the main pillars of the government’s growth strategy. The Abe administration designated the growth strategy as the “third arrow” of its Abenomics economic policies, while the first two arrows target monetary easing and fiscal spending.