Japan economy likely in recession

JAPAN - The composite index of coincident economic indicators for September dropped for the sixth straight month, indicating the national economy has likely entered a recession, according to the Cabinet Office.

The coincident CI, which reflects current economic conditions, stood at 91.2 compared with 100 for the base year of 2005, down 2.3 points from the previous month, the office said in a preliminary report released Tuesday.

In addition to declining exports stemming from a slowdown in overseas economies, some indicators, such as industrial output and shipments of durable goods, dropped due to sluggish domestic auto sales following the end of a government subsidy programme for purchases of environmentally friendly vehicles.

The Cabinet Office revised downward its basic assessment, saying the national economy has moved into a recessionary phase and is likely in the first stages of an economic slowdown.

This was the first such assessment made since May 2011, just after the Great East Japan Earthquake and tsunami.

Concerning future prospects, the Cabinet Office said it will be necessary to keep a close eye on the global economic downturn and exports.

Some market observers suspect the domestic economy entered a recessionary phase after peaking in March.

Govt's ComCare funding likely to match that of 2008's recession

Although the impending economic slowdown is unlikely to be as serious as the previous global financial crisis in 2008, the government is prepared to set aside the same amount of ComCare funds this year, said Minister of State for Community Development, Youth and Sports Madam Halimah Yacob after a visit to North East Community Development Council (CDC) on Thursday. The ComCare budget for 2008 was $63.7 million.

During her visit to the CDC, she was briefed on its operations and how it assists needy residents via its community-based programmes.

Adding that the funding amount 'will always be subjected to review if that is not sufficient', Madam Halimah also emphasised that 'the most important thing for us is that it is not just the ComCare schemes in terms of financial assistance, but schemes in terms of providing support for residents who are affected to get back on their feet and the most important thing is getting them a job'.


The CDC has reported a spike in the number of financial assistance cases that it saw last year, with close to 50 per cent increase in the number of applications for financial assistance for the last quarter of last year compared to the previous quarter.