26 January 2001, 17:55 Japan's Aso says Oct-Dec GDP possible to rise on quarter
--Japan's Aso says CPI drop is not a "good fall"
--Japan's Aso sees soft landing for US econ as highly possible
--Japan's Aso doesn't want BOJ to ease monetary policy
By Reiko Mizutome, BridgeNews
Tokyo--Jan. 26--Japan's real gross domestic product (GDP) in
October-December may show a rise from July-September, because data
suggested that personal consumption rose that quarter, Taro Aso, Minister
of State for Economic and Fiscal Policy, said Friday. Aso added that he
does not view consumer price falls as a beneficial result of production
technique improvements.
* * *
The Ministry of Economy, Trade and Industry (METI) released earlier
Friday that commercial sales--retail sales and wholesale sales
combined--for October-December rose for rose adjusted 1.8% on quarter,
after showing a 1.4% drop in July-September. This data indicated that
personal consumption, the largest component of GDP, may rise on quarter in
October-December.
Asked about whether October-December GDP will show a growth on
quarter, Aso said that, "looking at the (commercial sales) data, it is
likely that (real GDP for October-December will grow on quarter.)"
Real GDP for October-December is expected to be released in early
March by the Cabinet Office. Preliminary real GDP for July-September
showed a rise of 0.2%, or annualized 1.0%, on quarter.
Regarding recent falls in consumer prices, Aso said that, "(I realize
that) Japan is the only major country which has faced falls in prices,"
adding that, "it is unlikely that only Japan has enjoyed improvements in
production techniques." His comment indicated falls in consumer prices in
Japan are not considered a "good fall"--caused by improvement of
production techniques.
The Ministry of Public Management, Home Affairs, Posts and
Telecommunications announced earlier Friday that the consumer price index
(CPI) for the Tokyo metropolitan area in January was down 0.4% from a year
earlier, and the nationwide CPI in December was down 0.2% on year.
Aso said in an interview Wednesday that, "a deflationary spiral could
occur."
However, Aso said he does not want the Bank of Japan to ease monetary
policy now.
As for the U.S. economy, Aso said he sees that soft-landing of the
U.S. economy is highly possible because Federal Reserve Chairman AlanGreenspan endorsed tax cuts to support the economy.
End
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