Goldman Sachs Group cut its economic growth estimate for Japan and said there's a 50 percent chance of a recession in the world's second-largest economy.
``We estimate the probability of a recession in Japan has risen to the `danger level,''' Tetsufumi Yamakawa, chief Japan economist at Goldman, said in a report to clients today. ``We project weaker-than-expected growth in Japan.''
The nation's economy will continue to slow ``for the time being,'' Bank of Japan Deputy Governor Toshiro Muto said today. A housing slump in the U.S., which Goldman yesterday said may already be in recession, could prompt overseas investors to sell real estate holdings in Japan, Credit Suisse Group said today.
Yamakawa cut his 2008 growth estimate to 1 percent from 1.2 percent and said the central bank may have to forego raising rates this year, citing slower demand from emerging markets.
Sluggish spending by consumers has left Japan more dependant on overseas markets, just as cooling U.S. demand threatens to spread to Asia, where Japan sells half its exports.
Stocks including Mitsubishi Estate Co. declined today after Credit Suisse said the defaults in U.S. subprime mortgages may prompt overseas investors to sell their property holdings in Japan. Japan's leading index, a gauge of growth in the next three to six months, stalled in November, a report today showed.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEGWAR0ExmfQ&refer=home
Yesterday the call for U.S. recession, now "the danger" of recession in Japan ! Goldman´s PR division must be working on V 12 Mercedes cylinders....
``We estimate the probability of a recession in Japan has risen to the `danger level,''' Tetsufumi Yamakawa, chief Japan economist at Goldman, said in a report to clients today. ``We project weaker-than-expected growth in Japan.''
The nation's economy will continue to slow ``for the time being,'' Bank of Japan Deputy Governor Toshiro Muto said today. A housing slump in the U.S., which Goldman yesterday said may already be in recession, could prompt overseas investors to sell real estate holdings in Japan, Credit Suisse Group said today.
Yamakawa cut his 2008 growth estimate to 1 percent from 1.2 percent and said the central bank may have to forego raising rates this year, citing slower demand from emerging markets.
Sluggish spending by consumers has left Japan more dependant on overseas markets, just as cooling U.S. demand threatens to spread to Asia, where Japan sells half its exports.
Stocks including Mitsubishi Estate Co. declined today after Credit Suisse said the defaults in U.S. subprime mortgages may prompt overseas investors to sell their property holdings in Japan. Japan's leading index, a gauge of growth in the next three to six months, stalled in November, a report today showed.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEGWAR0ExmfQ&refer=home
Yesterday the call for U.S. recession, now "the danger" of recession in Japan ! Goldman´s PR division must be working on V 12 Mercedes cylinders....
