Kabuki economics

This article discusses how Japan's economy grew 1.1% in the fourth quarter of 2009. This was not hard since there was not much growth in the previous quarter, as the numbers were revised and lowered multiple times. This may also happen with the current figures. Even if the numbers do not change, the future is not looking bright. The main drivers of the growth are domestic demand and exports. Domestic demand for durable goods rose recently after the government subsidized car and electronics industries, but these expire in the coming year. Exports increased to China, but these might be reduced if the Chinese government puts a hold on bank lending.

This article demonstrates that Japan is continuing to struggles to maintain any type of strong growth. Many of the reasons cited for the problems in the early 1990's continue today. There remains high unemployment by Japanese standards and wages are falling. Subsidies provided by the government were to stimulate consumer spending, which will probably fall when they are taken away and price levels increase.