Skip to comments.UPDATE 3-Japan could face a third "lost" decade-Moody's
Posted on 06/28/2011 5:09:55 AM PDT by TigerLikesRooster
UPDATE 3-Japan could face a third "lost" decade-Moody's
Mon, Jun 27 2011
* Moody's sees quick economic rebound from disaster
* But says Japan may be facing a third "lost" decade
* Moody's has highest rating on Japan versus S&P, Fitch
* Moody's to decide on ratings by end August (Adds details)
By Edwina Gibbs and Stanley White
TOKYO, June 27 (Reuters) - Japan could face a third "lost" decade of sluggish economic growth that will leave it struggling to whittle down the heaviest debt burden among developed nations, Moody's ratings agency said on Monday.
It chided the government's failure to meet a self-imposed June 20 deadline for announcing a long-term plan to deal with the country's debts as negative, suggesting it is edging closer to cutting Japan's credit rating.
Japan has been mired in economic stagnation for much of the past two decades, slipping from second to third in the world rankings of biggest economies and building up some $10 trillion in debt as it tried to spur growth through spending.
The March earthquake and tsunami is set to add to Japan's debt load as the government spends on reconstruction.
"While Japan is likely to have a V-shaped recovery later this year from the March 11 earthquake, subsequent economic growth may subside to a lacklustre pace," Moody's said in a statement on its website.
"It is not inconceivable the country would have a third "lost" decade of growth," it said.
(Excerpt) Read more at reuters.com ...
Invest in the state of Georgia.
Philosophically, we already have.
Don't be surprised that Toyota decides to shift much of the production of the Prius models to the USA for this reason.
Jimmy is a citizen of the world now. Sort of like Al Gore and Tennessee, Bill Clinton and Arkansas and even Sarah Palin and Alaska.
With as much destruction as they have suffered, I would think ten years to get back on course is about what is to be expected.