Japan economy strengthening good news for Australia
The rapid improvement in Japan’s economy is important and is positive for Australia and the world. Japan is Australia’s second largest trading partner. Last year, Japan imported from Australia just under $18 billion worth of coal, around $11 billion of iron ore and $1.5 billion each of beef and copper.
Since Japanese Prime Minister Shinzo Abe when he took office late last year, there are some encouraging early signs that his policy Big Bang might be getting traction. The early evidence of the success of the massive policy stimulus showed up with the Japanese Cabinet Office monthly economic update. The report, released yesterday, upgraded Japan’s economic outlook and at the same time the Reuters Tankan survey showed signs of a broad based lift in activity. The Tankan survey for manufacturers rose to +7 index points in May from -4 in April to register the first positive reading in a year.