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New Global Economic Reality Will Help This Stock Rise

116 views  2013-06-25 02:53   Tagsblank  target  color  style  world 
While some areas of the world, such as the European Union (EU), are experiencing stagnant economic growth, other parts of the globe are experiencing stronger growth—but it’s coming at a cost.
One nation that has embarked on an aggressive policy to stimulate economic growth in relation to the global economy is Japan. The Prime Minister, Shinzo Abe, has made it clear that he wants to push a very aggressive monetary policy program to try and stimulate economic growth, which has led to a significant decline in the value of that nation’s currency, the yen.
Recent data show that to some extent economic growth is improving, as the value of shipments exported in May was 10% higher than those of the same period in 2012; that exceeded estimates from a Bloomberg survey of economists, which had earlier estimated a 6.4% increase. (Source: Coxon, M., “Japan exports surge both since 2010 in Boost for Abe: Economy,” Bloomberg, June 18, 2013.)

Also Read: NYSE Holidays 2013

But while the export sector is seeing a rebound in economic growth, the weakness of the yen is resulting in a trade deficit, as the costs of imports rise. The domestic economy is also hampered by Japan’s decision to shut down its nuclear power plants.

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