Japan economy Abdulaziz Barakat

The GDP in Japan grew by 0.3% in the first period, compared to last year economics analysts told that Japan economy will slow more in the next year. The GDP grew to 1.4% which is lower by about 1%. "As domestic demand is losing momentum and exports will likely weaken further due to Europe's debt trouble, there is a possibility that Japan will go back into an economic lull in July-September (period)," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance in Tokyo. There are several factors responsible for Japan economy to slow down. The biggest markets who exports goods from Japan are the United States and the Euro zone. Both markets are drowning in debts and struggling to recover from the financial crises. However, the Japanese Yan is stable compared to the Euro and the US dollar which means that any export from Japan will cost more expensive. Moreover, a county like China that manipulate the Forex exchange market to lower their Yuan “ Chinese currency “ against major currencies in the world like the US dollar and the Euro. The advantage for China to lower their currency is simply about attracting more customers with lower exchange rate “discount rate” regardless of the quality of the exported goods. Those are the main factors that slow down the Japanese economy.