Japan in danger of recession, says Goldman

**Voodoo Vince** · 10-01-2008, 11:19 PM

Japan in danger of recession, says Goldman

TOKYO - JAPAN'S tepid economy is in danger of following the United States into a recession this year, economists at Goldman Sachs said on Thursday.

Goldman's Japan economists said in a note to clients that the probability of a recession in the world's second-largest economy was 50 per cent, forecasting slow growth in the first half of the year as emerging market economies cool.

On Wednesday, Goldman's US economists predicted a recession this year due to the housing market's tumble and weaker consumer spending, predicting the Federal Reserve would cut overnight rates to 2.5 per cent from the current 4.25 per cent in response.

A recession is usually defined as an economy contracting over at least two straight quarters.

Goldman cut its forecast for growth in the Japanese economy this year to 1 per cent from 1.2 per cent after it said the US economy would shrink in the second and third quarters.

Goldman also said it expected the Bank of Japan to keep rates on hold at 0.5 per cent this year. Previously, it expected a rate rise in the July-September quarter. But it believes the BOJ will resume raising rates in the second quarter of next year.

'We expect there to be extremely little room for rate hikes justified by domestic factors,' Goldman economists Tetsufumi Yamakawa and Naoki Murakami said in the note.

Financial markets see little chance of the BOJ raising rates this year, as the Fed keeps loosening monetary policy and other major central banks are cutting rates to counter a broadening global slowdown. -- REUTERS

http://www.straitstimes.com/Latest%2...ry_194853.html

**leng8021** · 10-01-2008, 11:48 PM

well so is USA....

**Voodoo Vince** · 10-01-2008, 11:53 PM

And soon all the other countries in the world.

**T-Rex** · 11-01-2008, 03:09 AM

Hope Singapore can weather the recession.

**Agony_Ah pek** · 11-01-2008, 08:23 AM

It just started with a one man war on terrorism and the instability in the Middle East and now the whole world is deeply affected by inflations , rising costs of fuels and more nasty issues . Thank you Mr Bush ! =XXX

**Leocravensky** · 11-01-2008, 10:25 AM

Its not gonna be long before bush's time is over

**Jake** · 11-01-2008, 09:23 PM

Bush's empire will be gone.

10-01-2008, 11:19 PM	#1 (permalink)
Voodoo Vince Malaysian Kampung Boy Join Date: Oct 2007 Posts: 8,005 iTrader: (0) My Mood: Gender: Zodiac Sign: Country: Location: Hougang SGC$: 18,110.60 Bank: 0.00 Total SGC$: 18,110.60	Japan in danger of recession, says Goldman Japan in danger of recession, says Goldman TOKYO - JAPAN'S tepid economy is in danger of following the United States into a recession this year, economists at Goldman Sachs said on Thursday. Goldman's Japan economists said in a note to clients that the probability of a recession in the world's second-largest economy was 50 per cent, forecasting slow growth in the first half of the year as emerging market economies cool. On Wednesday, Goldman's US economists predicted a recession this year due to the housing market's tumble and weaker consumer spending, predicting the Federal Reserve would cut overnight rates to 2.5 per cent from the current 4.25 per cent in response. A recession is usually defined as an economy contracting over at least two straight quarters. Goldman cut its forecast for growth in the Japanese economy this year to 1 per cent from 1.2 per cent after it said the US economy would shrink in the second and third quarters. Goldman also said it expected the Bank of Japan to keep rates on hold at 0.5 per cent this year. Previously, it expected a rate rise in the July-September quarter. But it believes the BOJ will resume raising rates in the second quarter of next year. 'We expect there to be extremely little room for rate hikes justified by domestic factors,' Goldman economists Tetsufumi Yamakawa and Naoki Murakami said in the note. Financial markets see little chance of the BOJ raising rates this year, as the Fed keeps loosening monetary policy and other major central banks are cutting rates to counter a broadening global slowdown. -- REUTERS http://www.straitstimes.com/Latest%2...ry_194853.html To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. People don't plan to fail... They fail to plan.

10-01-2008, 11:48 PM	#2 (permalink)
leng8021 leng8021 Join Date: Jun 2007 Posts: 648 iTrader: (0) Gender: Zodiac Sign: Country: Location: Bt Panjang SGC$: 47.08 Bank: 900.00 Total SGC$: 947.08	Re: Japan in danger of recession, says Goldman well so is USA.... To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. 5QQsassZnancycard123

10-01-2008, 11:53 PM	#3 (permalink)
Voodoo Vince Malaysian Kampung Boy Join Date: Oct 2007 Posts: 8,005 iTrader: (0) My Mood: Gender: Zodiac Sign: Country: Location: Hougang SGC$: 18,110.60 Bank: 0.00 Total SGC$: 18,110.60	Re: Japan in danger of recession, says Goldman And soon all the other countries in the world. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. People don't plan to fail... They fail to plan.

11-01-2008, 03:09 AM	#4 (permalink)
T-Rex Addicted SGClubber Join Date: Dec 2007 Posts: 635 iTrader: (0) My Mood: Gender: Zodiac Sign: Country: Location: Marine Parade SGC$: 75.93 Bank: 0.00 Total SGC$: 75.93	Re: Japan in danger of recession, says Goldman Hope Singapore can weather the recession.

11-01-2008, 08:23 AM	#5 (permalink)
Agony_Ah pek Registered Members Join Date: Jan 2008 Posts: 38 iTrader: (0) My Mood: Gender: Zodiac Sign: Country: Location: Old Folks Home SGC$: 12.00 Bank: 28.87 Total SGC$: 40.87	Re: Japan in danger of recession, says Goldman It just started with a one man war on terrorism and the instability in the Middle East and now the whole world is deeply affected by inflations , rising costs of fuels and more nasty issues . Thank you Mr Bush ! =XXX To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

11-01-2008, 10:25 AM	#6 (permalink)
Leocravensky Addicted SGClubber Join Date: Aug 2007 Posts: 595 iTrader: (0) My Mood: Gender: Zodiac Sign: Country: Location: Jurong SGC$: 930.15 Bank: 0.00 Total SGC$: 930.15	Re: Japan in danger of recession, says Goldman Its not gonna be long before bush's time is over Leo~ Blog : leoandsong.blogspot.com To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

11-01-2008, 09:23 PM	#7 (permalink)
Jake Registered Members Join Date: Oct 2007 Posts: 200 iTrader: (0) My Mood: Gender: Zodiac Sign: Country: Location: Woodlands SGC$: 106.10 Bank: 0.00 Total SGC$: 106.10	Re: Japan in danger of recession, says Goldman Bush's empire will be gone.

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